2.1.2.1. 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 it can transact securities with a client located in that state if any of the following conditions apply:
• The client is from Canada, 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 she is the holder or contributor.
• The client is an institutional investor.
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