Series 63: Exceptions For Canadian Broker-Dealers

Exceptions for Canadian Broker-Dealers

While a broker-dealer from Canada may not come and set up shop in any state without jumping through the required regulatory and registration hoops, there are some exceptions that permit them to operate within a state using a limited registration.

These exceptions are built around the basic premise that the Canadian firm does not have offices in that state, in which case they can transact securities with a client located in that state if:

• • The client is from Canada, and is temporarily in that state, and had a relationship with the Canadian broker-dealer prior to entering the state.
• • The client is engaging in transactions for a self-directed, tax-advantaged retirement plan held in Canada, for which they are the holder or contributor.
• • The client is an institutional investor.

Agents (stockbrokers) work