Current through Register Vol. 63, No. 9, September 1, 2024
(1) A broker-dealer
that is resident in Canada and has no office or other physical presence in this
state may, provided the broker-dealer is licensed in accordance with this rule,
effect transactions in securities with or for, or induce or attempt to induce
the purchase or sale of any security by,
(a)
A person from Canada who is temporarily resident 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
(b) A person from Canada who is resident 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) A
salesperson who will be representing a Canadian broker-dealer licensed under
this rule may, provided the agent is licensed in accordance with this rule,
effect transactions in securities in this state as permitted for the
broker-dealer in section (1) of this rule.
(3) A Canadian broker-dealer may license
under this rule provided that it:
(a) Files
an application in the form required by the jurisdiction in which it has its
head office;
(b) Is registered as a
broker or dealer in good standing in the jurisdiction from which it is
effecting transactions in this state and files evidence thereof; and
(c) Is a member of a self-regulatory
organization or stock exchange in Canada.
(4) A salesperson who will be representing a
Canadian broker-dealer licensed under this rule in effecting transactions in
securities in this state may license under this rule provided that he or she:
(a) Files an application in the form required
by the jurisdiction in which the broker-dealer has its head office;
and
(b) Is registered in good
standing in the jurisdiction from which he or she is effecting transactions
into this state and files evidence thereof.
(5) If no denial order is in effect and no
proceeding is pending under ORS
59.205, licensing becomes
effective on the 30th day after an application is filed, unless earlier made
effective, and expires on December 31 of every year.
(6) A Canadian broker-dealer licensed under
this rule shall:
(a) Maintain its provincial
or territorial registration and its membership in a self-regulatory
organization or stock exchange in good standing;
(b) Provide the director upon request with
its books and records relating to its business in this state as a
broker-dealer;
(c) Inform the
director forthwith of any criminal action taken against it or of any finding or
sanction imposed on the broker-dealer as a result of any self-regulatory or
regulatory action involving fraud, theft, deceit, misrepresentation or similar
conduct; and disclose to its clients in the state that the broker-dealer and
its salespersons are not subject to the full regulatory provisions in the
Oregon Securities Law.
(7) A salesperson of a Canadian broker-dealer
licensed under this rule shall:
(a) Maintain
his or her provincial or territorial registration in good standing;
(b) Inform the director forthwith of any
criminal action, taken against him or her, or of any finding or sanction
imposed on the salesperson as a result of any self-regulatory or regulatory
action involving fraud, theft, misrepresentation or similar conduct.
(8)
(a) Renewal applications for Canadian
broker-dealers and salespersons under this rule must be filed by January 1 of
each calendar year following the date of original licensing.
(b) Renewal applications may be made by
filing the most recent renewal application, if any, filed in the jurisdiction
in which the broker-dealer has its head office, or if no such renewal
application is required, the most recent application filed pursuant to
subsection (3)(a) or (4)(a) of this rule.
(9) Every applicant for licensing or renewal
licensing under this rule shall pay the applicable non-refundable fee for
broker-dealers and agents as set in OAR
441-175-0002.
(10) A Canadian broker-dealer or salesperson
licensed under this rule may only effect transactions in this state as
permitted in sections (1) or (2) of this rule with or through:
(a) The issuers of the securities involved in
the transactions;
(b) Other
broker-dealers;
(c) Banks, savings
institutions, trust companies, insurance companies, investment companies as
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; or
(d) As otherwise permitted pursuant to the
Oregon Securities Law.
(11) A Canadian broker-dealer or agent
licensed under this rule and acting in accordance with the limitations set out
in section (10) is exempt from all of the requirements of the Oregon Securities
Law, except the anti-fraud provisions and the requirements set out in this
rule. Such Canadian broker-dealer or salesperson may only have its notice
filing under this rule denied, suspended or revoked for a breach of the
anti-fraud provisions in ORS
59.135 or the requirements in
this rule.
Stat. Auth.: ORS
59.285
Stats. Implemented: ORS
59.175
