Canadian Broker Dealers and Representatives Exemption

Certain Canadian Broker Dealers (BD) are exempt from registering in Washington. See WAC 460-20B-035 for more information about this exemption.

To qualify, the Canadian BD must not have a location in the US.

How to File for Exemption

To exercise the exemption, the Canadian BD must:

  • File a copy of the BDs current application for registration (as required by the jurisdiction/province in which the BD has its home office);
  • File proof of membership in a self-regulatory organization (including the Mutual Fund Dealers’ Association) or stock exchange in Canada (and maintain such membership);
  • File a Consent to Service of Process (U-2 or U-2A); and
  • Disclose to clients in Washington that the Canadian BD is not subject to Washington’s full regulatory requirements.

Doing Business with Canadian Clients

A Canadian BD covered by the exemption may deal with Canadian clients under the following conditions:

  1. Transactions with Canadians clients (who were clients before coming to Washington) if the client is only temporarily present in Washington; or
  2. Transactions with Canadian clients in a self-directed tax advantaged retirement plan in Canada, no matter how long the client is in Washington; or
  3. Transactions exempted by RCW 21.20.320(8).

Broker Dealer representatives for Canadian BDs under this exemption do not have to be registered in Washington.