Can a broker-dealer act as an agent?

A broker-dealer is a financial entity that is engaged with trading securities on behalf of clients, but which may also trade for itself. A broker-dealer is acting as a broker or agent when it executes orders on behalf of its clients, and as a dealer or principal when it trades for its own account.

Can a broker-dealer be an individual?

A broker-dealer is an individual or a firm that’s in the business of buying and selling securities. They can act as either agents or dealers. As an agent, a broker-dealer helps a customer buy or sell securities.

Who is excluded from the definition of a broker-dealer?

investment advisers. Banks, issuers, agents, and certain out-of-state broker-dealers are excluded from the definition of broker-dealer.

Does the de minimis rule apply to broker-dealers?

The de minimis rule is applicable to both investment advisers and investment adviser representatives (IARs), but not broker-dealers or agents.

Do broker/dealers register with SEC?

Most “brokers” and “dealers” must register with the SEC and join a “self-regulatory organization,” or SRO. This section covers the factors that determine whether a person is a broker or dealer.

Which of the following persons is not excluded from the definition of or exempt from registration as a broker dealer under the Uniform Securities Act?

According to the Uniform Securities Act, a bank, an agent, and an issuer are all specifically excluded from the definition of a broker-dealer. An investment adviser has no specific exclusion.

What does a Series 7 allow you to do?

What Is a Series 7 Securities License? The Series 7 license or general securities representative (GS) license allows the holder to sell almost all individual securities, including common and preferred stocks, call and put options, bonds, and other fixed income.

What is the de minimis exception?

‘The De Minimis’ exemption means an investment adviser is exempt from registration if they have five or fewer clients over a 12-month period with a physical address.

Do all broker-dealers have to register with FINRA?

To conduct securities transactions and business with the investing public in the United States, both firms and individuals must be registered with FINRA. Firms must apply and meet certain membership standards to become a FINRA-registered broker-dealer.

What is a FINRA waiver?

Pursuant to FINRA Rule 1210.09, FINRA established a waiver program for eligible individuals who left a member firm to work for a foreign or domestic financial services affiliate of a member firm with FINRA.

Who must be registered with FINRA?

You must be registered with FINRA if you’re engaged in the securities business of your firm, which includes salespersons, branch managers, department supervisors, partners, officers and directors. You are required to pass qualification exams to demonstrate competence in your particular securities activities.

Which individual would not be exempt from the definition of an agent under the Uniform Securities Act?

Excluded from the definition of “agent” are individuals who represent ISSUERS in trading exempt securities; clerical employees of broker-dealers with no sales function; and silent partners of broker-dealers (who have no active business role and don’t solicit).

Which of the following persons is excluded from registration or is exempt from registration as a broker-dealer in a state?

*A person buying and selling securities for customers’ accounts is deemed a broker-dealer under the Uniform Securities Act. Specifically excluded from the definition of a broker-dealer are banks, trust companies, and savings and loan associations.

Is Robinhood a broker-dealer?

Robinhood Financial LLC (member SIPC), is a registered broker dealer. Robinhood Securities, LLC (member SIPC), provides brokerage clearing services. Robinhood Crypto, LLC provides crypto currency trading. All are subsidiaries of Robinhood Markets, Inc.

Is BNY a broker-dealer?

Brokerage services are provided by BNY Mellon Securities Corporation (BNYMSC), a registered broker-dealer, a member of FINRA and SIPC, and a wholly owned subsidiary of The Bank of New York Mellon Corporation.

How much harder is Series 7 than 6?

The Series 7 is the tougher but more comprehensive exam of the two. It allows you to deal with almost any type of security, from stocks to bonds to investment trusts and funds, that a professional or retail investor would want.