Series 63 practice questionmediumAgent registration—issuer representatives
Samantha is an employee of a public utility company and sells its registered bonds to residents of State A. Under the USA, is Samantha required to register as an agent?
- ANo, because she is representing an issuer in sales of exempt securities.✓ Correct answer
- BYes, because she is soliciting sales of securities.
- CYes, unless the bonds are federally covered.
- DNo, unless she is paid commission.
Explanation
Why A — No, because she is representing an issuer in sales of exempt securities.
Employees representing issuers in sales of exempt securities (such as those issued by public utilities) are not considered agents (USA Sec. 401(b)). The payment method and federal status do not affect this exclusion.
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