Regulation of Agents of Broker-Dealers

Exam Weight: ~2-3 questions (2% of exam)

This unit covers the definition of an agent under the Uniform Securities Act (USA), including the four defining elements, exclusions from the agent definition (clerical employees, broker-dealer (BD) officers, and the officer-of-issuer rule with the five exempt categories), as well as agent registration through the Central Registration Depository (CRD), Form U4 reportable events, statutory disqualification, continuing education, termination, and the agent-versus-investment adviser representative (IAR) comparison.

What You'll Learn

• The definition of an agent, four defining elements, natural-persons-only rule, who is and is not an agent, exclusions from the definition (clerical employees, BD officers, officer-of-issuer rule), and the five exempt categories
• Registration basics, Form U4, examination requirements, reportable events, statutory disqualification, continuing education, termination and Form U5, and the agent-versus-IAR comparison