Series 63 practice questionmediumAgent exclusion—issuer representatives
An employee of Widget Corp. sells the company's bonds to insurance companies in State N. Under the USA, this employee:
- AIs not required to register as an agent because the sales are to institutional clients.✓ Correct answer
- BMust register as an agent because the securities are nonexempt.
- CMust register as an agent because the sales are to the public.
- DIs only required to register if the bonds are not registered with the SEC.
Explanation
Why A — Is not required to register as an agent because the sales are to institutional clients.
Employees representing issuers in sales of exempt securities or to institutional clients are excluded from the definition of agent (USA Sec. 401(b)). Registration is not triggered by sales to institutions.
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