Question

A registered securities agent has been contacted by an independent venture capitalist to obtain customers for a private placement that he is forming. Which statement is TRUE?
A) the agent is prohibited from directing customers to the venture capitalist

B) The agent is permitted to direct customers to the venture capitalist without restriction

C) the agent is permitted to direct customers to the venture capitalist with the permission of the Administrator

D) the agent is permitted to direct customers to the venture capitalist if the agent has posted a surety bond

Answer 1

Answer: A) the agent is prohibited from directing customers to the venture capitalist

Explanation:

This could be similar to a selling away, where he's putting his customers into a security firm which they are not much aware of in a transaction that they are not supervising.