When a representative sells securities outside of their firm’s jurisdiction, what must they do?

When a representative sells securities outside of their firm’s jurisdiction, seeking permission if they are selling for compensation is essential to comply with regulatory standards and the firm's policies. This requirement ensures that the firm is aware of the representative's activities and that they align with the firm's business practices and compliance protocols.

Selling for compensation can lead to potential conflicts of interest, legal liabilities, and regulatory scrutiny, so obtaining prior approval protects both the representative and the firm. It allows the firm to monitor outside activities, maintain ethical standards, and manage potential risks.

In contrast, simply notifying the firm without permission could lead to compliance issues, as the firm needs to evaluate the nature of the transaction before any action is taken. Selling without informing the firm or doing so without compensation does not adequately safeguard against potential violations of industry regulations and firm policies.