Okla. Admin. Code § 660:11-5-20

Current through Vol. 41, No. 19, June 17, 2024

Section 660:11-5-20 - Cross-border licensing exemption

By authority delegated to the Administrator in Section 1-401.B.1.h of the Securities Act, a Canadian broker-dealer meeting all of the following conditions is determined to be exempt from the registration requirement in Section 1-401.A of the Securities Act:

(1) The broker-dealer is domiciled in Canada, does not have an office or other physical presence in the United States, and is not an office or branch of a broker-dealer domiciled in the United States.

(2) The broker-dealer is registered with or a member of a Canadian self-regulatory organization, stock exchange, or the Bureau des Services Financiers and maintains that registration or membership in good standing.

(3) The broker-dealer and its agents effect transactions in securities with or for, or induce or attempt to induce the purchase or sale of any security by:

(A) an individual from Canada that temporarily resides or is temporarily present in this state and with whom the broker-dealer had a bona fide broker-dealer-customer relationship before the individual entered the United States; or

(B) an individual present in this state whose transactions relate to a self-directed, tax advantaged Canadian retirement plan of which the individual is the holder or contributor.

(4) The broker-dealer prominently discloses in writing to its clients in this state that the broker-dealer and its agents are not subject to the full regulatory requirement of the Securities Act.

(5) Neither the broker-dealer nor its agents disclaim the applicability of Canadian law or jurisdiction to any transaction conducted pursuant to this exemption.

(6) The broker-dealer and its agents comply with the antifraud provisions of the Securities Act and of federal securities laws.

(7) Prior to or contemporaneously with the first transaction in Oklahoma, the broker-dealer must file a consent to service of process on Form U-2 in a manner that effectively appoints the Administrator as agent for service of process.

(8) Any Canadian broker-dealer or agent relying on this exemption shall, upon written request, furnish the Department any information relative to a transaction covered by this Section that the Administrator deems relevant.

Okla. Admin. Code § 660:11-5-20

Added at 21 Ok Reg 2532, eff 7-1-04