Series 63 practice questioneasyAgent Definition—Issuer Exemptions
Which of the following would NOT be considered an agent under the Uniform Securities Act?
- AAn individual representing an issuer in a transaction with existing employees of the issuer, where no commission is paid.✓ Correct answer
- BA trainee at a broker-dealer who cold-calls prospects but does not accept orders.
- CAn individual who solicits the sale of exempt securities for a broker-dealer, and receives compensation.
- DA partner at a broker-dealer who supervises agents and occasionally executes client orders.
Explanation
Why A — An individual representing an issuer in a transaction with existing employees of the issuer, where no commission is paid.
Option A is specifically exempt under USA Sec. 401(c)(2). Options B, C, and D all perform functions that fall under the definition of agent if they represent a BD in effecting transactions, regardless of title or level of compensation.
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