this is an outdated text: switch to the updated & improved dc code website
home, about

The DC Code: § 31-5602.10 Limited registration of Canadian broker-dealers and agents.

Index31 Insurance and Securities. (Refs & Annos)
a
A Canadian broker-dealer may be licensed under this section if the broker-dealer:
1
Has its principal office located in a province or territory of Canada that provides at least equivalent registration for a broker-dealer that is resident in the United States;
2
Is resident in Canada and does not have an office or physical presence in the United States;
3
Files an application in the form required by the jurisdiction in which the broker-dealer has its principal office;
4
Files a written consent to service of process under § 31-5607.06;
5
Is registered as a broker or dealer in good standing in the jurisdiction from which the broker-dealer is effecting transactions in the District and files evidence of the registration; and
6
Is a member of a self-regulating organization or stock exchange in Canada.
b
An agent may be licensed under this section if the agent represents a Canadian broker-dealer that is licensed under this section, and the agent:
1
Files an application in the form required by the jurisdiction in which the broker-dealer has its principal office;
2
Files a written consent to service of process under section § 31- 5607.06; and
3
Is registered and files evidence of good standing in the jurisdiction from which the agent is effecting transactions into the District.
c
If no denial order is in effect and no proceeding is pending under § 31- 5602.07, the license shall become effective no later than noon on the 30th day after an application is filed. If the application is incomplete, the Commissioner may request additional information from the applicant and delay the effective date for 30 days from the date of receipt of the request for information.
d
(1) A broker-dealer licensed under this section may effect transactions in securities with or for or induce or attempt to induce the purchase or sale of a security by a person from Canada who is:
A
Temporarily resident in the District and with whom the Canadian broker-dealer had a bona fide broker-dealer-client relationship before the person entered the United States; or
B
A resident in the District and whose transactions are in a self- directed tax-advantaged retirement plan in Canada of which the person is the holder or contributor.
2
A Canadian broker-dealer or agent licensed under this section shall not effect transactions in the District unless it is:
A
Authorized in paragraph (1) of this subsection;
B
With or through:
i
The issuers of the securities involved in the transactions;
ii
Other broker-dealers; or
iii
Banks, savings institutions, trust companies, insurance companies, investment companies as defined in the Investment Company Act of 1940, approved August 22, 1946 (54 Stat. 789; 15 U.S.C. § 80a-1 et seq.), pension or profit-sharing trusts, or other financial institutions or institutional investor, whether acting for themselves or as trustees; or
C
As otherwise permitted by the Commissioner in any rule or order.
e
An agent licensed under this section may effect transactions in securities in the District of Columbia as permitted for the Canadian broker-dealer licensed under this section.
f
A Canadian broker-dealer licensed under this section shall:
1
Maintain provincial or territorial registration and membership in good standing in a self-regulating organization or stock exchange;
2
Provide the Commissioner on request with books and records relating to its business in the District as a broker-dealer;
3
Inform the Commissioner promptly of any criminal action taken against the broker-dealer or of any finding or sanction imposed on the broker-dealer as a result of regulatory action, including that of a self-regulating organization, involving fraud, theft, deceit, misrepresentation, or similar conduct; and
4
Disclose to its clients in the District that the broker-dealer and its agents are not subject to the full regulatory requirements of the District.
g
An agent of a Canadian broker-dealer licensed under this section shall:
1
Maintain provincial or territorial registration in good standing; and
2
Inform the Commissioner promptly of any criminal action taken against the agent or of any finding or sanction imposed on the broker-dealer or agent as a result of regulatory action, including that of a self-regulating organization, involving fraud, theft, deceit, misrepresentation, or similar conduct.
h
Renewal applications for Canadian broker-dealers and agents under this section shall be filed annually before December 1 and may be made by filing the most recent renewal application, if any, filed in the jurisdiction in which the broker-dealer has its principal office or, if a renewal application is not required, the most recent application filed under subsection (a)(1) or (b)(1) of this section.
i
An applicant for an initial license or renewal under this section shall pay the fee for broker-dealers and agents required by rules issued by the Commissioner.
j
A Canadian broker-dealer or agent licensed under this section and acting in accordance with the limitations in subsection (d) or (e) of this section shall be exempt from all of the requirements of this chapter, except the provisions of subchapters V and VI.

Historical and Statutory

Legislative History of Laws For Law 14-150, see notes following § 31-5601.01. DC CODE § 31-5602.10 Current through December 11, 2012

Credits

(Oct. 26, 2000, D.C. Law 13-203, § 210, as added June 25, 2002, D.C. Law 14-150, § 2(c), 49 DCR 4238.)