NASAA Series 63Regulation of Broker-Dealers and AgentsEasy
A technician who primarily provides IT support and occasional administrative assistance at a broker-dealer's branch office also, on rare occasions, directs clients to a registered agent for securities-related inquiries. Under the Uniform Securities Act, how should this individual be classified?
- AExcluded from the definition of an agent under the clerical exclusion.
- BAs a broker-dealer, due to being employed by one.
- CAs an agent, due to directing clients for securities inquiries.
- DAs an investment adviser representative, due to providing assistance.
Show answer & explanationAnswer & explanation
Correct answer: A. Excluded from the definition of an agent under the clerical exclusion.
The Uniform Securities Act includes a 'clerical exclusion' for individuals whose activities are solely clerical or ministerial. Simply directing clients to a registered agent for inquiries, without soliciting or taking orders, falls within this exclusion, meaning they are not considered an agent.
Why the other options are wrong
- B. A broker-dealer is a firm, not an individual employee in this capacity.
- C. Directing clients to an agent for inquiries, without more, does not constitute soliciting or effecting transactions, which are key to being an agent.
- D. There's no indication of providing advice or managing assets, which are characteristics of an IAR.
Clerical Exclusion (Agent Definition)
Individuals whose functions are exclusively clerical or ministerial are excluded from the definition of an agent under the Uniform Securities Act, even if they work for a broker-dealer.
- Duties are administrative, not sales-related
- Cannot solicit orders or effect transactions
- Includes roles like receptionist, IT support, administrative assistant
- Prevents unnecessary registration for support staff
Memory trick: No selling, no advising, just support means no agent title.