Laws & RegulationsQuestion 88 of 110
An agent (broker-dealer representative) who engages in 'selling away' is doing which of the following?
a.Recommending only securities on an approved list
b.Disclosing all transactions to the employing firm
c.Executing trades exactly as the firm directs
d.Selling securities transactions outside the scope of employment without the firm's knowledge or approval
Explanation
Selling away occurs when an agent effects private securities transactions outside the employing broker-dealer's supervision and without its knowledge or approval, a prohibited practice. It deprives the firm of oversight and exposes clients to unvetted risks. Agents must conduct approved business through their firm.
Law Reference: Uniform Securities ActPractice all 110 questions free — no signup required.
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