6.10.502    CANADIAN BROKER-DEALERS AND SALESPERSONS

(1) A Canadian broker-dealer that is resident in Canada, and has no office or other physical presence in the United States, and is not an office of, branch of, or a natural person associated with a broker-dealer otherwise registered in the United States may transact business in this state without registering as a broker-dealer pursuant to 30-10-201, MCA, under the following conditions:

(a) the business transacted by the Canadian broker-dealer must be limited to:

(i) transactions subject to the exemption provided by 30-10-105(7), MCA;

(ii) transactions with or for a Canadian person who is temporarily present in this state and with whom the Canadian broker-dealer had a bona fide customer relationship before the person entered this state; or

(iii) transactions with or for a Canadian person in a self-directed tax advantaged retirement plan in Canada of which that person is the holder or contributor; and

(b) the Canadian broker-dealer must:

(i) file the following with the securities administrator:

(A) a notice in the form of that person's current application for registration required by the jurisdiction in which that person's head office is located; and

(B) a consent to service of process pursuant to 30-10-208, MCA;

(ii) be a member of a self-regulatory organization or stock exchange in Canada; and

(iii) maintain provincial or territorial registration and membership in a Canadian self-regulatory organization or stock exchange in good standing;

(c) disclosure must be made to the customers in this state that the Canadian broker-dealer is not subject to the full regulatory requirements of the Securities Act of Montana; and

(d) the transaction must not be in violation of 30-10-301, MCA.

(2) A Canadian securities salesperson representing a Canadian broker-dealer transacting business in this state pursuant to (1) need not register pursuant to 30-10-201, MCA, provided that he or she is registered in good standing in the appropriate Canadian jurisdiction.

(3) Transactions by Canadian broker-dealers and their salespersons pursuant to (1) and (2) will be deemed not to involve the "offer" or "sale" of a security, as those terms are defined in 30-10-103, MCA, for purpose of compliance with 30-10-202, MCA, and the rules promulgated thereunder. Nothing in this rule shall affect the duty of the Canadian broker-dealer and its agents to comply with 30-10-301, MCA, and the rules promulgated thereunder.

History: 30-10-105, 30-10-107, MCA; IMP, 30-10-201, MCA; NEW, 2000 MAR p. 3336, Eff. 12/8/00; TRANS and AMD, from ARM 6.10.135, 2011 MAR p. 746, Eff. 9/26/08.)