Associated person refers to an individual who is directly or indirectly connected to an organization, business, or entity, usually in a professional, financial, or administrative capacity. This term is commonly used in the legal and financial sectors, especially in the context of regulatory bodies or agencies overseeing specific industries.
In the realm of finance, an associated person is typically someone who works for or is affiliated with a brokerage firm, investment advisor, or securities dealer. They may be involved in various activities such as soliciting customers, trading securities, providing investment advice, or engaging in other financial transactions. These individuals are subject to various regulatory requirements and must meet certain qualifications, such as passing licensing exams or fulfilling continuing education obligations.
In a broader sense, an associated person can also be someone who has a close relationship with a particular organization or is involved in the day-to-day operations of a business. This could encompass employees, consultants, contractors, or other individuals who have a connection to the organization but may not necessarily hold formal titles or positions.
The term associated person is crucial in regulatory and legal frameworks as it helps define the scope of responsibility, liability, and obligations that an individual has in relation to the organization or entity they are associated with.
