1 An individual from Canada who is temporarily present in this State by HC120730031818

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									02              DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION

032             OFFICE OF SECURITIES

Chapter 507: LICENSING EXEMPTION FOR CERTAIN FOREIGN BROKER-DEALERS


Summary: This chapter exempts certain foreign broker-dealers from the licensing requirements of 32
M.R.S.A. §16401 and exempts their offers and sales of securities from the registration requirements of 32
M.R.S.A. §16301. This chapter also exempts agents who represent such broker-dealers from the licensing
requirements of 32 M.R.S.A. §16402.



Section 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.
                                                                                     02-032 Chapter 507   page 2



       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.


Section 2.     Exempt Transactions.

       Offers or sales of any security effected by a broker-dealer that is exempt from licensing under this
       rule are exempt from the registration requirements of 32 M.R.S.A. §16301.


Section 3.     Preservation of Exemptions.

       A broker-dealer that is registered or licensed in Canada and otherwise qualifies for a licensing
       exemption provided for in 32 M.R.S.A. §16401(2) shall not lose that exemption solely as a result
       of effecting transactions in compliance with this rule. In addition, a broker-dealer that otherwise
       qualifies for the exemption provided for in this rule shall not lose this exemption solely as a result
       of also effecting transactions pursuant to an exemption provided for in 32 M.R.S.A. §16401(2).




STATUTORY AUTHORITY: 32 M.R.S.A. §§16401(4), 16402(2), 16203, and 16605(1)

EFFECTIVE DATE:
     April 1, 1997 - under 02-029, Bureau of Banking, Securities Division

EFFECTIVE DATE (ELECTRONIC CONVERSION):
     May 7, 2001

NON-SUBSTANTIVE CORRECTIONS:
     October 22, 2001 - to reflect move to new Office of Securities, 02-032, mandated by P.L. 2001 c.182

AMENDED:
    December 31, 2005 – filing 2005-514

								
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