When an agent's employment situation changes, the USA requires notifications from multiple parties (not just the agent). This section covers the triple notification requirement.
Triple Notification Requirement
When an agent begins or terminates a connection with a broker-dealer (BD) or issuer, all three parties must promptly notify the Administrator:
- The agent
- The former employer (BD or issuer)
- The new employer (BD or issuer), if applicable
This triple notification ensures the Administrator always has current information about agent associations.
Exam Tip: Gotchas
The notification duty runs to all three parties. Failure by any one of them, including the former employer, is a separate violation of the Act. The USA standard is "promptly," and the obligation applies both when an agent begins and when an agent terminates an association.