What must be true for an agent to operate under both SEC and the state’s Office of Insurance Regulation?

For an agent to operate under both the Securities and Exchange Commission (SEC) and a state's Office of Insurance Regulation, they must be dual licensed. This means the agent has obtained the necessary licenses to conduct business in both areas because the regulatory requirements for securities and insurance are distinct. The SEC regulates securities transactions and providers, while the state's Office of Insurance Regulation oversees the insurance industry. Meeting the licensing requirements for both allows the agent to legally sell both financial products (such as variable annuities) and insurance products.

Dual licensing ensures that an agent is knowledgeable and compliant with the respective regulations governing securities and insurance, which often involve different legal guidelines, ethical considerations, and continuing education requirements. This comprehensive registration allows for a broader scope of practice and service options for clients who may need both investment and insurance solutions.

The other options do not accurately capture the necessary requirement. Additional training, SEC registration alone, or having a college degree in finance do not constitute the legal ability to operate across both regulatory frameworks without the dual licensing.