What happens to an agent's registration if they are no longer employed by a broker-dealer?

When an agent is no longer employed by a broker-dealer, the agent's registration is typically terminated by the state Administrator. This reflects the understanding that an agent's registration is intrinsically linked to their relationship with a broker-dealer; when that relationship ends, so does their authorization to act as an agent.

In the context of securities regulation, the state Administrator has the authority to manage and oversee the registration of agents and broker-dealers. Therefore, the termination of an agent's registration ensures that only those individuals who are currently employed by a registered broker-dealer can continue to operate in a capacity that requires registration.

This process is designed to protect investors by maintaining accurate records of who is qualified and authorized to conduct securities transactions. Consequently, when an agent's employment ceases, the state must terminate their registration to uphold these regulatory standards.