What does "residency requirements" refer to concerning agents?

Residency requirements pertaining to agents generally refer to the obligation that agents must be registered in the state where they conduct business. This ensures that agents are subject to the regulations and laws of that state, providing a framework for oversight and consumer protection.

Agents operating in a particular state must adhere to the state's securities laws and regulations, which include the registration process that validates their ability to solicit and conduct transactions with clients in that jurisdiction. This registration typically involves meeting certain qualifications, maintaining proper licensing, and adhering to ongoing compliance standards established by the state regulatory authority.

While agents may often live in the same state as their clients or need to be U.S. citizens to comply with federal laws, these factors do not constitute the primary focus of residency requirements in the context of securities regulations. The aspect of being registered in the state where business is conducted is crucial for legal operational legitimacy and for ensuring accountability in interactions with investors.