02 - Maine
02 DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
032 OFFICE OF SECURITIES
Chapter 507: LICENSING EXEMPTION FOR CERTAIN FOREIGN BROKER-DEALERS
Summary: This chapter exempts certain foreign broker-dealers from the licensing requirements of 32 M.R.S.A. §16401 and exempts their offers and sales of securities from the registration requirements of 32 M.R.S.A. §16301. This chapter also exempts agents who represent such broker-dealers from the licensing requirements of 32 M.R.S.A. §16402.
Section 1. Exempt Broker-dealers.
The following are exempt from the licensing requirements of 32 M.R.S.A. §§ 16401 and 16402:
1. A broker-dealer that is registered or licensed in Canada, has no place of business in this State, and who, in connection with its activities in this State:
A. Only effects transactions in securities with or for, or attempts to effect the purchase or sale of any securities by:
(1) An individual from Canada who is temporarily present in this State, with whom the Canadian broker-dealer had a bona-fide customer relationship before the individual entered the United States;
(2) An individual from Canada who is present in this State, and whose transactions are in a self-directed tax advantaged retirement plan in Canada of which the individual is the holder or contributor; or
(3) An individual who is present in this State with whom the broker-dealer customer relationship arose while the individual was temporarily or permanently resident in Canada; and
B. Is registered or licensed in its home province or territory, and is a member in good standing of a self-regulatory organization or stock exchange in Canada;
C. Files with the Securities Administrator a notice in the form of the current application required by its home province or territory;
D. Files with the Securities Administrator a consent to service of process in a form which complies with the requirements of 32 M.R.S.A. §16611;
E. Discloses to its clients in this State that it is not subject to the full regulatory requirements of the Maine Uniform Securities Act; and
F. Is not in violation of 32 M.R.S.A. §16501 or any rules promulgated thereunder.
2. An agent who represents a broker dealer that is exempt under this section to effect transactions in securities or attempt to effect the purchase or sale of securities in this State as permitted for a broker-dealer in sub-section 1.
Section 2. Exempt Transactions.
Offers or sales of any security effected by a broker-dealer that is exempt from licensing under this rule are exempt from the registration requirements of 32 M.R.S.A. §16301.
Section 3. Preservation of Exemptions.
A broker-dealer that is registered or licensed in Canada and otherwise qualifies for a licensing exemption provided for in 32 M.R.S.A. §16401(2) shall not lose that exemption solely as a result of effecting transactions in compliance with this rule. In addition, a broker-dealer that otherwise qualifies for the exemption provided for in this rule shall not lose this exemption solely as a result of also effecting transactions pursuant to an exemption provided for in 32 M.R.S.A. §16401(2).
STATUTORY AUTHORITY: 32 M.R.S.A. §§16401(4), 16402(2), 16203, and 16605(1)
EFFECTIVE DATE:
April 1, 1997 - under 02-029, Bureau of Banking, Securities Division
EFFECTIVE DATE (ELECTRONIC CONVERSION):
May 7, 2001
NON-SUBSTANTIVE CORRECTIONS:
October 22, 2001 - to reflect move to new Office of Securities, 02-032, mandated by P.L. 2001 c.182
AMENDED:
December 31, 2005 – filing 2005-514
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