1. (1) Broker-Dealer Exemption. A broker-dealer 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 SDCL 47-31B-401(d), if the broker-dealer complies with the following conditions:

   1. (a) Registered with or is a member of a self-regulatory organization in Canada, stock exchange in Canada, or the Bureau des services financiers;
   2. (b) Maintains in good standing its provincial 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
   3. (c) Effects or attempts to effect transactions in securities:
   4. (1) 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
   5. (2) With or for a person from Canada who is present in this state, whose transactions are in a Canadian self-directed tax advantaged retirement account of which the person is the holder or contributor.
2. (2) Agent exemption. An agent who represents a Canadian broker-dealer that is exempt under this rule is exempt from agent registration under SDCL 47-31B-402(b)(9).

Source: 30 SDR 211, effective July 1, 2004; 37 SDR 112, effective December 9, 2010.

General Authority: SDCL 47-31B-401(d) , 47-31B-402(b)(9) , 47-31B-605(a)(3).

Law Implemented: SDCL 47-31B-401(d).