Understanding the Role of an Associated Person of a Transfer Agent

Q: What are the responsibilities of an associated person?

They oversee compliance, management, and operational tasks related to the transfer of securities.

Q: How can I ensure compliance as an associated person?

Familiarize yourself with SEC regulations and consider using legal templates for necessary documentation.

Definition & Meaning

The term "associated person of a transfer agent" refers to individuals who are involved in managing, directing, supervising, or performing tasks related to the functions of a transfer agent. This definition excludes employees whose roles are strictly clerical or ministerial. It also includes those who control or are controlled by the transfer agent in relation to these activities. Essentially, it encompasses key personnel who play a significant role in the operations of a transfer agent.

Table of content

Legal Use & context

This term is commonly used in the financial and securities sectors, particularly in the context of transfer agents, who are responsible for maintaining records of securities holders and facilitating the transfer of securities. Understanding who qualifies as an associated person is crucial for compliance with regulations set forth by the Securities and Exchange Commission (SEC). Users can manage related legal documents and procedures using templates from US Legal Forms, which are drafted by qualified attorneys.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A person who oversees the processing of stock transfers at a transfer agency qualifies as an associated person due to their management role.

Example 2: A consultant who advises a transfer agent on compliance issues and has access to sensitive data may also be considered an associated person. (hypothetical example)

Relevant laws & statutes

The primary legal reference for this term is found in the Securities Exchange Act of 1934, particularly under 15 USCS § 78c, which defines the roles and responsibilities of transfer agents and their associated persons.

Comparison with related terms

Term	Definition	Differences
Transfer Agent	An entity that manages the issuance and transfer of securities.	Associated persons are individuals within the transfer agent, while the transfer agent itself is the organization.
Broker-Dealer	A person or firm that buys and sells securities on behalf of clients.	Broker-dealers engage in trading securities, whereas associated persons focus on the management of transfer functions.

Common misunderstandings

What to do if this term applies to you

If you believe you are an associated person of a transfer agent, it is important to understand your responsibilities and ensure compliance with relevant regulations. Consider using legal templates from US Legal Forms to draft necessary documents. If your situation is complex, seeking advice from a legal professional may be beneficial.

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Quick facts

Jurisdiction: Securities and Exchange Commission (SEC)
Typical roles include management, supervision, and compliance.
Excludes clerical roles.

Key takeaways

Frequently asked questions

Who qualifies as an associated person of a transfer agent?

Individuals directly involved in managing or supervising transfer agent activities, excluding clerical staff.