Certain Canadian Broker Dealers (BD) are exempt from registering in Washington. See WAC 460-20B-035 for more information about this exemption.
To qualify, the Canadian BD must not have a location in the US. There are no fees required for this exemption.
How to File for Exemption
To exercise the exemption, the Canadian BD must:
- File a copy of the BDs current application for registration (as required by the jurisdiction/province in which the BD has its home office);
- File proof of membership in a self-regulatory organization (including the Mutual Fund Dealers’ Association) or stock exchange in Canada (and maintain such membership);
- File a Consent to Service of Process (U-2 or U-2A); and
- Disclose to clients in Washington that the Canadian BD is not subject to Washington’s full regulatory requirements.
Doing Business with Canadian Clients
A Canadian BD covered by the exemption may deal with Canadian clients under the following conditions:
- Transactions with Canadians clients (who were clients before coming to Washington) if the client is only temporarily present in Washington; or
- Transactions with Canadian clients in a self-directed tax advantaged retirement plan in Canada, no matter how long the client is in Washington; or
- Transactions exempted by RCW 21.20.320(8).
Broker Dealer representatives for Canadian BDs under this exemption do not have to be registered in Washington.