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← Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questionmediumAgent Registration — Issuer Agents

Which of the following individuals would be required to register as an agent of an issuer?

  1. AAn officer of the issuer who sells the company's securities to institutional investors in a private placement
  2. BA clerical employee who processes paperwork for securities transactions but does not solicit
  3. CAn officer who sells the issuer's securities and receives commissions tied to those sales✓ Correct answer
  4. DA director who receives no special compensation for selling the company's stock to 3 accredited investors
Explanation

Why C — An officer who sells the issuer's securities and receives commissions tied to those sales

Under USA Section 401(b), an individual who represents an issuer and receives special transaction-based compensation (commissions) for selling securities is generally required to register as an agent. Officers and directors who sell in exempt transactions without special compensation typically do not meet the agent definition.

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