02-032-507 Me. Code R. § 1

Current through 2024-51, December 18, 2024

Section 032-507-1 - Exempt Broker-dealers

The following are exempt from the licensing requirements of 32 M.R.S.A. §§16401 and 16402:

1. A broker-dealer that is registered or licensed in Canada, has no place of business in this State, and who, in connection with its activities in this State:

A. Only effects transactions in securities with or for, or attempts to effect the purchase or sale of any securities by:

(1) An individual from Canada who is temporarily present in this State, with whom the Canadian broker-dealer had a bona-fide customer relationship before the individual entered the United States;

(2) An individual from Canada who is present in this State, and whose transactions are in a self-directed tax advantaged retirement plan in Canada of which the individual is the holder or contributor; or

(3) An individual who is present in this State with whom the broker-dealer customer relationship arose while the individual was temporarily or permanently resident in Canada; and

B. Is registered or licensed in its home province or territory, and is a member in good standing of a self-regulatory organization or stock exchange in Canada;

C. Files with the Securities Administrator a notice in the form of the current application required by its home province or territory;

D. Files with the Securities Administrator a consent to service of process in a form which complies with the requirements of 32 M.R.S.A. §16611;

E. Discloses to its clients in this State that it is not subject to the full regulatory requirements of the Maine Uniform Securities Act; and

F. Is not in violation of 32 M.R.S.A. §16501 or any rules promulgated thereunder.

2. An agent who represents a broker dealer that is exempt under this section to effect transactions in securities or attempt to effect the purchase or sale of securities in this State as permitted for a broker-dealer in sub-section 1.

02-032 C.M.R. ch. 507, § 1