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Definition of Associated Person
Associated Person is any individual under the control of a broker dealer, issuer or bank including employees, officers, and directors, as well as those individuals who control or have common control of a broker dealer, issuer or bank.
Applying "Associated Person" to Securities Exams:
In the case of a broker dealer; registered reps, principals, officers and directors are all considered associated persons. As such, the are required to be registered. Clerical and secretarial staff are not considered associates, and therefore are not required to be registered.
FAQs
A sole proprietor, partner, officer, director, or branch manager of a broker-dealer, or other natural person occupying a similar status or performing similar functions. A natural person engaged in the investment banking or securities business who is directly or indirectly controlling or controlled by a broker-dealer.
What does an associated person mean? ›
The term "Associated Person" means: (1) a natural person registered under FINRA rules; or (2) a sole proprietor, or any partner, officer, director, branch manager of the Applicant, or any person occupying a similar status or performing similar functions; (3) any company, government or political subdivision or agency or ...
Who is the associated person of a firm? ›
The definition of associated person is broad and can embrace a wide range of business relationships: • an employee who is acting in the capacity of employee • an agent (other than an employee) who is acting in the capacity of an agent, and • any other person who performs services for or on behalf of the firm who is ...
Is a registered rep an associated person? ›
"Associated Persons" of a Broker-Dealer
These individuals may also be called "stock brokers" or "registered representatives." Although associated persons usually do not have to register separately with the SEC, they must be properly supervised by a currently registered broker-dealer.
What is an associated person in FINRA? ›
A natural person engaged in the investment banking or securities business who is directly or indirectly controlling or controlled by a broker-dealer. For purposes of FINRA examinations, investigations or proceedings, any other person listed as a direct owner or executive officer on a broker-dealer's Form BD.
How do you become an associated person? ›
Registration Requirements for APs
- The sponsor must designate a Security Manager in order to obtain secure access to NFA's Online Registration System (ORS)
- The sponsor completes online Form 8-R for the individual.
- Satisfy proficiency requirements.
- Complete application verification in ORS.
- Submit fingerprint cards.
What is another word for associated?
| allied | connected |
|---|
| affiliate | analogous |
| strategically aligned | twin |
| fellow | federative |
| accompanying | fed |
52 more rows: to join as a partner, friend, or companion. They were closely associated with each other during the war. 2. : to join or connect together : combine. particles of gold associated with heavy minerals.
Is an associated person required to register with the CFTC? ›
Intermediaries are generally required to register with the CFTC. Associated Persons (APs) also must register and their principals must be listed. Floor Traders (FTs) are also required to register.
Who is not considered an associated person? ›
In futures trading, the term "associated person" refers to particular people within the employ of a broker or dealer that perform the role of sales or supervision of sales. Clerical and administrative employees are not included.
Associated Persons means in respect of each Party, any officer, director, employee, consultant, agent, direct or indirect beneficial owner or shareholder, or any other person acting on behalf of such Party.
Who is a shareholder associated person? ›
Shareholder Associated Person of a shareholder means (i) any person controlling, controlled by, under common control with, or acting in concert with, the shareholder, (ii) any beneficial owner of shares of the Corporation owned of record or beneficially by the shareholder, (iii) any entity of which the shareholder is ...
Who is the associated person of an investment adviser? ›
Associated person of any investment adviser means any person who for compensation refers, solicits, offers, or negotiates for the purchase or sale of investment advisory services.
Do introducing brokers need to be registered as an associated person? ›
An IB is required to file the following for its principals and associated persons: Complete online Form 8-R for each principal and AP. Submit fingerprint cards. Satisfy proficiency requirements for each sole proprietor, AP, forex AP and swap AP.
What makes you a registered representative? ›
Individual registered representatives, or registered financial professionals, must register with FINRA, pass a qualifying exam and be licensed by your state securities regulator before they can do business with you.
What does SEC registrant mean? ›
Registrant is a term used in reference to any company that files documents with the Securities and Exchange Commission (SEC). The term applies to companies conducting initial public offerings (IPO) and companies that file periodic reports.
Who is a related person in the investment Advisers Act? ›
(7) Related person means any person, directly or indirectly, controlling or controlled by you, and any person that is under common control with you.
What is an associated person swap dealer? ›
An AP of an SD or major swap participant (MSP) is not required to be registered. However, CFTC Regulation 1.3 defines an AP of an SD or MSP as a natural person who is associated with an SD or MSP in any capacity that involves the solicitation or acceptance of swaps or the supervision of any person so engaged.
