230 R.I. Code R. 230-RICR-50-05-1.5

Current through December 3, 2024

Section 230-RICR-50-05-1.5 - Broker-Dealer Exemptions

A. The following broker-dealers (as that term is defined in R.I. Gen. Laws § 7-11-101(1)) shall be exempt from the licensing requirements of R.I. Gen. Laws § 7-11-201:

1. Any broker-dealer who is a resident of Canada, has no office or other physical presence in this State, and complies with the following conditions:

a. Only affects or attempts to affect transactions exempted by R.I. Gen. Laws § 7-11-402 unless otherwise expressly required by the terms of the exemption:

(1) with or for a person who is a resident of Canada who is temporarily present in Rhode Island and with whom the Canadian broker-dealer had a bona fide business-client relationship before the person entered the State; or

(2) with or for a person who is a resident of Canada who is present in Rhode Island and whose transactions are in a self-directed tax advantages retirement plan in Canada of which the person is the holder or contributor;

b. Files a notice with the Director of the Department in the form of the broker-dealer's current application for registration required by the jurisdiction in which the broker-dealer's head office is located, including any amendments thereto;

c. Files a consent to service of process with the Director;

d. Provides the Director, upon request, a copy of the broker-dealer's books and records relating to the broker-dealer's business in Rhode Island as a broker-dealer;

e. Informs the Director promptly of any regulatory, disciplinary or criminal action being taken against the broker-dealer, and the Director determines that such action would not be grounds for denial of the exemption contained herein;

f. Is a member in good standing of a self-regulatory organization or stock exchange in good standing and provides evidence thereof to the Director;

g. Maintains provincial or territorial registration and membership in a self-regulatory organization or stock exchange in good standing and provides evidence thereof to the Director;

h. Discloses in writing to its client's in Rhode Island that the broker-dealer is not subject to the full regulatory requirements of the RIUSA or any regulations promulgated thereunder; and

i. Is not in violation of any of the provisions of the RIUSA or any rules and regulations promulgated thereunder and is not in violation of any federal securities law and any rules and regulations promulgated thereunder.

B. Any person who will be representing a Canadian broker-dealer exempted by this Part shall also be deemed automatically exempt from licensing requirements so long as the person acting as a representative shall comply with all of the conditions of this Part.

230 R.I. Code R. 230-RICR-50-05-1.5