An agent wishes to sell a private placement to clients. The agent receives approval from the clients but not from her employing broker-dealer. She does not receive any compensation for the transaction. Which statement is TRUE under the USA?

1. AThis is permitted since no compensation is received
2. BThis is selling away and is prohibited regardless of compensation✓ Correct answer
3. CThis is permitted if all clients are accredited investors
4. DThis is a violation only if the product is non-exempt

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