Broker-Dealer & Agent Regulation

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

Broker-dealers form the transaction side of the securities industry. While investment advisers provide advice, broker-dealers execute trades. The Series 65 exam tests who qualifies as a broker-dealer, how they differ from investment advisers, and what supervision requirements apply.

What You'll Learn

• Master the definition of broker-dealer, exclusions from the definition, registration requirements, underwriters, market makers, and associated persons
• Compare the key structural differences between investment advisers (IAs)/investment adviser representatives (IARs) and broker-dealers (BDs)/agents including standards of conduct, registration, and compensation
• Understand written supervisory procedures, branch office supervision, and independent contractor obligations