NAICS UNIVERSITY · Free research for insurance agents
Investment Banking and Securities Intermediation
NAICS 523150 · United States · 2022 edition
This industry comprises establishments primarily engaged in underwriting, originating, and/or maintaining markets for issues of securities, or acting as agents (i.e., brokers) between buyers and sellers in buying or selling securities on a commission or transaction fee basis. Investment bankers act as principals (i.e., investors who buy or sell on their own account) in firm commitment transactions or act as agents in best effort and standby commitments. This industry also includes establishments acting as principals in buying or selling securities generally on a spread basis, such as securities dealers or stock option dealers.
Start with the work promised to the client.
For Investment Banking and Securities Intermediation, clarify the services, contracts and consequences of an error. Review professional liability (e&o), regulatory defense costs, directors and officers liability. Confirm which professional activities and additional services the proposed coverage actually addresses.
Questions to ask
- Is the firm a registered broker-dealer, a registered investment advisor, or both — and with which regulators (FINRA, SEC, state)?
- What types of products are offered or underwritten — equities, fixed income, mutual funds, alternatives, derivatives, or structured products?
- Does the firm act as a principal (dealer) or strictly as an agent (broker), and to what extent?
- What is the current regulatory history — any open FINRA arbitrations, SEC inquiries, or prior regulatory actions?
- How many registered representatives are associated with the firm, and what are the supervision and compliance procedures?
- For Investment Banking and Securities Intermediation, what should the underwriter know about prior finra arbitration awards, sec enforcement actions, or state securities regulator sanctions?
- For Investment Banking and Securities Intermediation, what should the underwriter know about involvement in underwriting or distributing distressed, speculative, or novel financial instruments?
- For Investment Banking and Securities Intermediation, what should the underwriter know about significant proprietary trading or principal transactions beyond standard dealer activity?
Activities described by this code
- Bond dealing (i.e., acting as a principal in dealing securities to investors)
- Mutual fund agencies (i.e., brokerages)
- Securities brokerages
- Securities underwriting
- Stock brokerages
- Stock options dealing
Other activities to examine
Census classification reference
For educational purposes only. AI-generated insurance research and automated logic can contain errors. Independently verify classification and coverage decisions.
Compare another operationInsurance operations research — draft
Establishments in this class act as intermediaries in securities markets — executing trades on behalf of clients, underwriting new issues of stocks and bonds, maintaining dealer markets, or acting as principals buying and selling securities on their own account. Day-to-day operations typically involve licensed registered representatives, trading platforms, client account management, compliance oversight, and regulatory reporting to bodies such as FINRA and the SEC.
Questions to investigate
- Is the firm a registered broker-dealer, a registered investment advisor, or both — and with which regulators (FINRA, SEC, state)?
- What types of products are offered or underwritten — equities, fixed income, mutual funds, alternatives, derivatives, or structured products?
- Does the firm act as a principal (dealer) or strictly as an agent (broker), and to what extent?
- What is the current regulatory history — any open FINRA arbitrations, SEC inquiries, or prior regulatory actions?
This insurance research was generated in April 2026. It has not received a complete human review. The October 12, 2026 audit checked codes and titles only, not descriptions or coverage assertions.