Broker-Dealer and Agent Registration
Series 66 also tests broker-dealer, underwriter, market maker, associated person, agent, Form BD, Form U4, records, and supervision rules.
How to study the Series 66
Treat the Series 66 as a dual-capacity exam: know the product, profile the client, then identify whether the person is acting as agent, adviser, or IAR.
Core concepts
Concept 1
Broker-dealer and agent definitions must be separated from adviser and IAR definitions.
Exam cue: Name the capacity: broker-dealer, agent, adviser, or IAR.
Concept 2
Registration and post-registration requirements include Form BD, Form U4, records, maintenance, confirmations, and supervision.
Exam cue: Check transaction-based compensation and order activity.
Concept 3
Dually registered professionals must know which capacity they are acting in for a given client interaction.
Exam cue: Look for required filings and supervision.
Risk pitfalls and guardrails
Treating dual registration as permission to blur capacity.
Guardrail: Do not let an exemption erase antifraud or disclosure duties.
Paying transaction compensation to an unregistered person.
Guardrail: Avoid answers that blur capacity, skip disclosure, ignore custody, or give unlimited administrator power.
Ignoring broker-dealer records because an advisory relationship exists.
Guardrail: Avoid answers that blur capacity, skip disclosure, ignore custody, or give unlimited administrator power.
Memory anchors
Broker-Dealer
A broker-dealer effects securities transactions for others or for its own account.
Agent
An agent represents a broker-dealer or issuer in securities transactions.
Underwriter
An underwriter participates in securities distribution for an issuer.
Market Maker
A market maker stands ready to buy and sell to support liquidity.
Associated Person
An associated person is connected with a broker-dealer under securities laws.
Form BD
Broker-dealer registration uses Form BD and related filings.
Broker-Dealer Records
Broker-dealers must maintain required books and records.
Trade Confirmation
Confirmations disclose important transaction details.
Agent Supervision
Broker-dealers must supervise agent securities activity.
Capacity Disclosure
Dual registrants should make the acting capacity clear.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
A firm effects securities transactions for the accounts of others or for its own account. What is such a firm generally called?
An individual represents a broker-dealer in effecting securities transactions with customers. What is this individual generally called?
Answer all questions to submit.
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Move forward only after this module is stable.
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