Commission Payments to Unregistered Persons
Chapters in this video
- 0:00 Who can and cannot get paid a commission
- 0:54 Ollie's commission dilemma: the core rule
- 1:52 Label stripping: why the name of the payment does not matter
- 2:37 Unregistered status alone is not the complete test
- 3:37 Three-step exam checklist: payment, recipient, activities
- 4:04 Rapid-fire exam recap
What this video covers
- The core prohibition: when a member firm may not pay transaction-related compensation to an unregistered person
- Why regulators strip away compensation labels and look only at what the person actually does
- The difference between unregistered status alone and the true test of compensation plus related activities
- How to distinguish securities activities that require broker-dealer registration from ordinary non-securities services
- The exam's favorite trap answer: that firms can never pay any money to any unregistered person
- The three-step checklist on exam day: identify the payment, then the recipient, then the activities tied to the money
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 99 course also includes adaptive practice questions and spaced-repetition flashcards, free through the end of 2026.