6 Del. Admin. Code § 200-F-608

Current through Register Vol. 28, No. 5, November 1, 2024

Section 200-F-608 - Registration Exemption for Certain Canadian Broker-Dealers

(a) A Canadian broker-dealer which meets the conditions of this Rule as set forth below shall be exempt from the registration requirement of Section73-301 of the Act.

(b) To be eligible for this exemption, the broker-dealer must be resident in Canada, have no office or other physical presence in Delaware, and comply with the following conditions:

(1) Only effects or attempts to effect transactions in securities with, or for, one or more of the following:

(A) a person from Canada who is temporarily present in Delaware, with whom the Canadian broker-dealer had a bona fide business-client relationship before the person entered Delaware;

(B) a person from Canada who is present in Delaware, whose transactions are in a self-directed tax advantaged retirement plan in Canada of which the person is the holder or contributor; or

(C) as otherwise permitted by the Act; and

(2) Is registered in its home province or territory, and a member in good standing of a self-regulatory organization or stock exchange in Canada;

(3) Files with the Director a notice in the form of the current application required by the jurisdiction in which its head office is located;

(4) Files with the Director a consent to service of process in a form which complies with the requirements of Section 73-702 of the Act.

(5) Discloses to its clients in Delaware that it is not subject to the full regulatory requirements of the Act; and

(6) Is not in violation of Section 73-201 of the Act or any rules promulgated thereunder.

(c) Exempt transactions. Offers or sales of any security effected by a broker-dealer who is exempt from registration under this Rule are exempt from the registration requirements of Section 73-202 of the Act and the filing requirements of Section 73-211 of the Act.

(d) Agent exemption. An agent who represents a Canadian broker-dealer that is exempt from registration under this Rule is also exempt from the registration requirement of Section 73-301 of the Act, provided such agent maintains his or her provincial or territorial registration in good standing.

(e) Denial, Suspension or Revocation. The Director may by order deny, suspend, or revoke the exemption of a particular Canadian broker-dealer provided pursuant to Rule 608 if he or she finds that the order is in the public interest and that the Canadian broker-dealer (or any partner, officer, director, or any person occupying a similar status or performing similar functions, or any person directly or indirectly, controlling the broker-dealer) has done anything prohibited by Section73-304(a)(1) to (8),(12) or (13) of the Act.

6 Del. Admin. Code § 200-F-608

7 DE Reg. 213 (8/1/03)
15 DE Reg. 529 (10/01/11)
18 DE Reg. 394 (11/1/2014) (Final)