Canadian Broker-Dealers

The Utah Uniform Securities Act defines a "Broker-dealer" in Section 61-1-13(3) . The Utah Administrative Code Rule R164-4-8  addresses how certain Canadian brokers may be excluded from the definition of "Broker-dealer" and the licensing requirements that follow.

To be excluded from the definition of "Broker-dealer" as a Canadian broker, the firm must meet the following requirements:

  1. Reside in Canada;
  2. Have no office or other physical presence in Utah; and
  3. Comply with the following conditions:
    1. Only effect or attempt to effect transactions in securities:
      • with or through the issuers of the securities involved in the transactions, broker-dealers, banks, saving institutions, trust companies, insurance companies, investment companies defined in the Investment Company Act of 1940, pension or profit-sharing trusts, or other financial institutions or institutional buyers, whether acting for themselves or as trustees;
      • with or for a person from Canada who is temporarily present in this state, with whom the Canadian person had a bona fide business-client relationship before the person entered this state;
      • or with or for a person from Canada who is in this state, whose transactions are in a self-directed tax advantaged retirement plan in Canada of which the person is the holder or contributor;
    2. File both a notice and a consent to service of process in the form that the Canadian broker's jurisdiction requires;
    3. Be a member of a self-regulatory organization or stock exchange in Canada;
    4. Maintain provincial or territorial registration and membership in a self-regulatory organization or stock exchange in good standing;
    5. Disclose to clients in Utah that the Canadian broker is not subject to the full regulatory requirements of the Utah Uniform Securities Act; and
    6. Have no violation of Section 61-1-1 and all rules promulgated thereunder.