Legal Definitions - customer's person

The term customer's person refers to an individual who is licensed and authorized to act on behalf of a financial firm to interact directly with clients, providing investment advice, executing trades, and managing accounts. This individual is more commonly known as a registered representative.

A registered representative is a professional who works for a brokerage firm or other financial institution and is licensed by regulatory bodies (such as the Financial Industry Regulatory Authority, or FINRA, in the United States) to buy and sell securities like stocks, bonds, and mutual funds for clients. They serve as the primary point of contact between the client and the financial firm, offering guidance, explaining investment products, and ensuring that transactions are carried out in accordance with regulatory standards and the client's best interests. The phrase "customer's person" emphasizes their direct role in serving and representing the client within the firm.

• Example 1: Retirement Planning

  Sarah, a recent college graduate, wants to start saving for retirement. She visits a financial planning firm and meets with David, a licensed financial advisor. David discusses her long-term goals, risk tolerance, and helps her set up a diversified investment portfolio, explaining the different mutual funds and ETFs available. He then executes the initial investments on her behalf. In this scenario, David is Sarah's customer's person because he is the registered representative directly assisting her with her financial planning and investment needs at the firm.

• Example 2: Corporate Investment Management

  A small tech startup has accumulated some surplus cash and wants to invest it wisely to generate returns while maintaining liquidity. The CEO contacts a large investment bank and is introduced to Maria, a registered representative specializing in corporate accounts. Maria advises the company on suitable short-term investment vehicles, such as money market funds and corporate bonds, and manages the execution of these investments. Maria acts as the customer's person for the tech startup, providing expert financial guidance and managing their investment portfolio within the bank.

• Example 3: Handling a Stock Trade

  Mr. Chen, an experienced investor, decides he wants to sell a specific stock he owns and buy shares in a different company. He calls his brokerage firm and speaks with Lisa, a licensed broker. Mr. Chen gives Lisa the instructions for his trades, and Lisa verifies his identity, confirms the details, and then executes the buy and sell orders through the firm's trading system. Lisa is Mr. Chen's customer's person because she is the registered individual at the brokerage firm who directly handles his trading instructions and ensures the transactions are processed correctly.