Legal Definitions - customer's man

The term customer's man is an older, less commonly used phrase for what is now more formally known as a registered representative.

A registered representative is an individual who is licensed to buy and sell securities (such as stocks, bonds, and mutual funds) on behalf of clients. They work for a brokerage firm and are regulated by financial authorities, ensuring they meet specific educational, ethical, and professional standards. Their primary role is to assist clients with investment decisions, manage their portfolios, and execute trades, always acting in the client's best interest within the bounds of financial regulations.

Here are some examples illustrating the role of a registered representative:

• Example 1: Retirement Planning
  Maria, a software engineer nearing retirement, wants to ensure her savings are invested wisely to provide a steady income stream. She consults with a registered representative at a financial advisory firm. The representative reviews Maria's financial goals, risk tolerance, and existing assets, then recommends a diversified portfolio of mutual funds and bonds tailored to her retirement timeline. The representative then executes the trades to set up Maria's new investment accounts.

  This illustrates the term because the registered representative is licensed to provide investment advice and execute transactions (buying mutual funds and bonds) on behalf of Maria, the client, to help her achieve her financial objective.

• Example 2: Managing a Business's Surplus Funds
  The owner of a successful small manufacturing company, "InnovateTech," finds that the business has accumulated significant surplus cash. Instead of letting it sit idle, the owner wants to invest a portion of these funds to generate returns for future expansion. They engage a registered representative who specializes in corporate accounts. The representative helps InnovateTech set up a corporate investment account and advises on suitable short-term and long-term investment vehicles that align with the company's liquidity needs and growth strategy.

  Here, the registered representative is acting on behalf of a corporate client, InnovateTech, to manage and invest its funds in the securities market, demonstrating their role in facilitating investment transactions for various types of clients.

• Example 3: Inherited Wealth Management
  David recently inherited a substantial sum of money and a portfolio of various stocks from a distant relative. Unfamiliar with the complexities of the stock market, he seeks guidance on how to manage these assets responsibly. He meets with a registered representative who helps him understand the inherited portfolio, discusses his personal financial goals (e.g., saving for a down payment on a house, funding his children's education), and then works with him to rebalance the portfolio to better suit his current needs and risk profile, selling some stocks and purchasing others.

  This example shows the registered representative providing expert advice and executing trades (selling and buying stocks) to help David manage his inherited assets according to his individual financial objectives, a core function of the role.