Agent Registration Requirements
Agents are individuals who represent broker-dealers or issuers in securities transactions. Understanding agent registration requirements is essential for the Series 65 exam.
Definition of Agent
An agent is any individual (other than a broker-dealer itself) who represents a broker-dealer or issuer in:
- Effecting purchases or sales of securities
- Attempting to effect purchases or sales of securities
| Key Points | Details |
|---|---|
| Must Be Individual | Agents are natural persons, not firms |
| Representative Relationship | Acts on behalf of BD or issuer |
| Transaction-Related | Involved in effecting or attempting securities transactions |
| Also Called | Registered Representative, stockbroker |
Who Is NOT an Agent
Exclusions from Agent Definition
| Exclusion | Conditions |
|---|---|
| Clerical/Administrative Staff | No securities sales activities |
| Issuer Representatives (Exempt Transactions) | Certain transactions don't require registration |
| Non-Compensated Officers/Directors | Not compensated for selling securities |
| Persons in Non-Sales Roles | Operations, compliance (non-customer facing) |
Issuer Transactions NOT Requiring Agent Registration
Representatives of issuers are NOT agents when effecting:
| Transaction Type | Details |
|---|---|
| Employee Benefit Plans | Sales to employees under qualified plans |
| Isolated Non-Issuer Transactions | Occasional, not part of regular business |
| Institutional Transactions | Sales to banks, insurance companies, etc. |
| Existing Security Holder Transactions | Stock dividends, rights offerings |
State Registration Requirements
Registration Process
| Step | Details |
|---|---|
| 1. Association | Must be associated with registered broker-dealer |
| 2. Form U4 | File through Central Registration Depository (CRD) |
| 3. Examinations | Pass required qualifying exams |
| 4. Background Check | Fingerprinting, criminal/regulatory history |
| 5. State Fees | Pay applicable registration fees |
| 6. Approval | Await state processing |
Form U4 Contents
| Category | Information Required |
|---|---|
| Personal | Name, SSN, DOB, addresses (5 years) |
| Employment | History for past 10 years |
| Education | Schools, degrees, certifications |
| Disclosures | Criminal, regulatory, civil, financial, termination |
| Fingerprints | Required in most states |
Qualification Examinations
Securities Industry Essentials (SIE)
| Requirement | Details |
|---|---|
| Sponsor | No sponsor required—anyone 18+ can take |
| Questions | 75 questions (70 scored, 5 pretest) |
| Time | 105 minutes |
| Passing Score | 70% |
| Cost | $80 |
| Validity | 4 years from passing |
Series 7 (General Securities Representative)
| Requirement | Details |
|---|---|
| Prerequisite | Must pass SIE (co-requisite) |
| Sponsor | Requires broker-dealer sponsorship |
| Questions | 125 questions (120 scored, 5 pretest as of Oct 2025) |
| Time | 225 minutes (3 hours 45 minutes) |
| Passing Score | 72% |
| Scope | Broadest representative license—most securities |
Series 6 (Investment Company/Variable Contracts)
| Requirement | Details |
|---|---|
| Prerequisite | Must pass SIE (co-requisite) |
| Sponsor | Requires broker-dealer sponsorship |
| Questions | 50 scored questions |
| Time | 90 minutes |
| Passing Score | 70% |
| Scope | Limited—mutual funds, variable annuities, variable life |
State Law Exams
| Exam | Purpose |
|---|---|
| Series 63 | Uniform Securities Agent State Law |
| Series 65 | Investment Adviser Representative |
| Series 66 | Combined 63 + 65 content (requires Series 7) |
Common Registration Combinations
| Role | Exams Required |
|---|---|
| General Securities Rep | SIE + Series 7 + Series 63 |
| Investment Company Rep | SIE + Series 6 + Series 63 |
| Investment Adviser Rep (only) | Series 65 |
| Dual (Rep + IAR) | SIE + Series 7 + Series 66 |
On the Exam: The SIE can be taken without sponsorship and remains valid for 4 years. The Series 7 and Series 6 require broker-dealer sponsorship via Form U4.
Registration Maintenance
Effective Registration
| Principle | Details |
|---|---|
| BD Association Required | Registration only valid while associated with registered BD |
| Termination | Registration terminates when association ends |
| Transfer | Can transfer to new BD via Form U4 |
| Re-Registration | Must re-register with new firm |
Continuing Education (FINRA)
| Element | Requirement |
|---|---|
| Regulatory Element | Annual computer-based training |
| Firm Element | Firm-specific annual training |
| Non-Compliance | Status becomes "CE Inactive" |
| Inactive Status | Cannot engage in securities activities |
Supervision Requirements
Broker-Dealer Obligations
| Requirement | Details |
|---|---|
| Written Supervisory Procedures | Document supervision framework |
| Designated Supervisors | Principals responsible for oversight |
| Transaction Review | Monitor trading activity |
| Communication Review | Review correspondence, emails, social media |
| Training | Ongoing compliance education |
| Red Flag Response | Investigate and address issues |
Principal Registration
Supervisors must be registered as principals:
| Principal Type | Exam Required |
|---|---|
| General Securities Principal | Series 24 |
| Financial/Operations Principal | Series 27 |
| Investment Company Principal | Series 26 |
Key Takeaways
- Agents are individuals representing BDs in securities transactions
- Clerical staff and issuer reps in exempt transactions are not agents
- SIE requires no sponsor; Series 7/6 require BD sponsorship
- Agent registration is only valid while associated with a registered BD
- Supervisors must be registered principals (Series 24, 26, or 27)
Test Your Knowledge
The Securities Industry Essentials (SIE) exam:
A
B
C
D
Test Your Knowledge
An agent's state registration:
A
B
C
D
Test Your Knowledge
The Series 7 exam allows a registered representative to:
A
B
C
D
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15.3 Regulation Best Interest
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