The brother-in-law of an agent of a broker-dealer has asked the agent if he will be willing to offer his clients shares of a private placement in a brand new company the brother-in-law is starting. The agent would earn substantial commissions from the sale of the shares. Under NASAA Regulations, which of the following would be required by the Broker-Dealer and/or Agent?
[A] The Broker-Dealer must establish a separate business entity to handle these transactions of the Agent.[B] The Agent is required to get written authorization of their broker-dealer prior to executing any transactions in the private placement.[C] The Broker-Dealer and Agent must inform clients that the Broker-Dealer will assume no responsibility for the transactions in the private placement.[D] The Agent of the Broker-Dealer is never allowed to participate in such transactions.