DEFINITION of Affiliated Person
An affiliated person is someone in a position to influence the actions of a corporation. This includes directors, officers and certain shareholders. Depending on the context, an affiliated person might be referred to simply as an "affiliate." Affiliated persons may also be called control persons or insiders.
BREAKING DOWN Affiliated Person
In connection with a securities registration, the Securities and Exchange Commission (SEC) expands the definition of an affiliated person quite broadly. Form S-11 defines an affiliated person to also include 1) persons owning 10% or more of any class of a company's stock, 2) any person who is a promoter of the company and connected with the company in any capacity, 3) any principal underwriter of the securities being registered, 4) any person providing management or advisory services for the company, and 5) "any associate of any of the foregoing persons."
Distinguishing affiliated persons from others is important in the regulation of securities transactions. Affiliated persons often have access to inside information and thus their transactions are more carefully regulated.