NASAA Series 63Regulation of Broker-Dealers and AgentsHard
An agent registered with Broker-Dealer Alpha wants to also register concurrently with Broker-Dealer Beta, an unrelated firm, to sell a broader range of securities products. Alpha and Beta are not affiliated with each other in any way. Under the Uniform Securities Act, may this dual registration occur?
- AYes, provided the agent discloses the dual registration in writing to both firms' compliance departments
- BNo, an agent generally may not be registered with more than one broker-dealer at the same time unless the broker-dealers are affiliated or the Administrator's rules permit it
- CYes, an agent may always register with multiple broker-dealers with no restriction
- DNo, because agent registrations are limited to one state at a time, not one broker-dealer
Show answer & explanationAnswer & explanation
Correct answer: B. No, an agent generally may not be registered with more than one broker-dealer at the same time unless the broker-dealers are affiliated or the Administrator's rules permit it
Under the Uniform Securities Act, an individual generally cannot be a registered agent for more than one broker-dealer simultaneously, unless the broker-dealers are affiliated by ownership or control, or the Administrator by rule permits the dual registration under specified conditions.
Why the other options are wrong
- A. Incorrect — mere written disclosure to both firms does not satisfy the affiliation/Administrator-rule requirement.
- C. Incorrect — dual, unaffiliated BD registration is not freely permitted.
- D. Incorrect — this confuses agent-BD affiliation rules with multistate registration, which is a separate issue.
Single Broker-Dealer Rule for Agents
An agent generally may be registered with only one broker-dealer at a time unless the firms are affiliated or the Administrator's rules provide an exception.
- Prevents conflicts of interest and supervisory gaps
- Affiliated BD structures are a recognized exception
- Distinct from an agent registering in multiple states, which is permitted
Memory trick: One Agent, One Firm (Unless Family)