PURPOSE: This rule prescribes exemptions from registration for broker-dealers, agent, investment advisers, and investment adviser representatives.

1. (1) Canadian Limited Registration Exemption.

   1. (A) Broker-Dealer Exemption. A brokerdealer that is registered in Canada and who has no office or other physical presence in this state is exempted from broker-dealer registration pursuant to section 409.4-401(d), RSMo, provided it complies with the following conditions:

      1. 1. Registered with or is a member of a

self-regulatory organization in Canada, stock exchange in Canada or the Bureau des services financiers;

1. 2. Maintains in good standing its provin-

cial or territorial registration and its registration with or membership in a self-regulatory organization in Canada, stock exchange in Canada or the Bureau des services financiers; and

1. 3. Effects or attempts to effect transac-

tions in securities:

1. A. With or for a person from Canada

who is temporarily present in this state, with whom the Canadian broker-dealer had a bona fide broker-dealer–client relationship before the person entered the United States; or

1. B. With or for a person from Canada

who is present in this state, whose transactions are in Canadian self-directed tax advantaged retirement account of which the person is the holder or contributor.

1. (B) Agent Exemption. An agent who represents a Canadian broker-dealer that is exempt under this rule is exempt from agent registration under section 409.4-402, RSMo.

1. (2) Exemption from Investment Adviser Registration for Broker-Dealers with Investment Adviser Capacity.

   1. (A) A broker-dealer registered under section 409.4-401, RSMo that transacts business in this state as an investment adviser is exempt from registering as an investment adviser under section 409.4-403, RSMo provided that the broker-dealer complies with the following conditions:

      1. 1. The broker-dealer must control and

supervise all investment advisory activities of the investment adviser representatives; and

1. 2. The broker-dealer must comply with

the notice filing requirement set forth in 15 CSR 30-51.020(1)(C).

1. (3) Exemption from Investment Adviser Representative Registration for Broker-Dealer Agents. A broker-dealer agent registered under section 409.4-402, RSMo that transacts business in this state as an investment adviser representative is exempt from registering as an investment adviser representative under section 409.4-404, RSMo provided that the investment adviser representative is under the control and supervision of the registered broker-dealer.
2. (4) Exemption from Investment Adviser Representative Registration for Solicitors. A person who is paid a solicitor fee pursuant to 15 CSR 30-51.145(1) is exempt from registering as an investment adviser representative.

AUTHORITY: sections 409.4-401(d) 409.4- 402(b)(9), 409.4-403(b)(3), 409.4-404(b)(2), and 409.6-605, RSMo Supp. 2003.* Original rule filed Dec. 28, 2001, effective July 30, 2002. Emergency amendment filed Aug. 27, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 28, 2003, effective Feb. 29, 2004.

*Original authority: 409.4-401, RSMo 2003; 409.4-402, RSMo 2003; 409.4-403, RSMo 2003; 409.4-404, RSMo 2003; 409.6-605, RSMo 2003.