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← Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questioneasyAgent Definition — Exclusions

During a registration workshop, the instructor adds this setup first. Treat the facts as a straight Series 63 application question. Under the Uniform Securities Act, which of the following individuals is NOT considered an agent?

  1. AA registered representative who solicits new brokerage accounts
  2. BAn individual who represents a broker-dealer in selling securities
  3. CA trainee who cold-calls potential customers to solicit securities purchases
  4. DAn individual who represents an issuer in an exempt transaction with no special compensation✓ Correct answer
Explanation

Why D — An individual who represents an issuer in an exempt transaction with no special compensation

Under USA Section 401(b), an individual who represents an issuer in a transaction with existing employees, partners, or directors without receiving special transaction-based compensation is generally not considered an agent. Cold-callers, registered representatives, and others who actively solicit securities transactions are considered agents. The governing USA principle is unchanged even though the framing is different.

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