Quasi-agency

An American attempt to reconcile their pie-eyed notions of agency with the grim economic realities of equities brokerage. A riskless principal, they say, is a quasi-agent.

Hey, just while I’ve got you hear let’s rehearse the scenarios of actual agency:

Possible agency scenarios

Here are the possible “undisclosed agency” scenarios at the time of contract:

• Fully disclosed agency: Principal has appointed agent, agent has disclosed agency, agent has disclosed principal.
• Undisclosed principal: Principal has appointed agent, agent has disclosed agency, agent has not disclosed principal.
• Undisclosed agency: Principal has appointed agent, agent has not disclosed agency, agent has not disclosed principal.
• Full principal: Principal has not appointed agent, agent has not disclosed agency, agent has not disclosed principal. (i.e., a fellow who claims ex post facto to have been an agent is better known as a “liar”).

See also

• Investment Advisers Act of 1940