Series 63 practice questionmediumAgent registration exceptions
Which of the following individuals is NOT required to register as an agent under the USA?
- AAn employee of an issuer who sells the company's nonexempt securities to the public in nonexempt transactions.
- BAn employee of a broker-dealer who sells exempt securities to retail customers.
- CAn employee of an issuer who sells only exempt securities to institutional clients.✓ Correct answer
- DAn employee of a broker-dealer who solicits private placements.
Explanation
Why C — An employee of an issuer who sells only exempt securities to institutional clients.
Individuals representing issuers in transactions involving exempt securities or exempt transactions are excluded from the agent definition (USA Sec. 401(b)). Those representing broker-dealers must register, regardless of exemption.
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