Utah Administrative Code
Topic - Commerce
Title R164 - Securities
Rule R164-4 - Licensing Requirements
Section R164-4-8 - Exclusion for Certain Canadian Brokers and Securities Exemption
Universal Citation: UT Admin Code R 164-4-8
Current through Bulletin 2024-06, March 15, 2024
(A) Authority and purpose
(1) The Division enacts this rule
under authority granted by Subsections
61-1-13(3)(i)
and 61-1- 14(2)(s) and Section
61-1-24.
(2) This rule provides an exclusion from the
definition of "Broker-dealer" for certain Canadian brokers and provides an
exemption for transactions effectuated by these certain Canadian
brokers.
(B) Definitions
(1) "Division" means the Division of
Securities, Utah Department of Commerce.
(C) Broker-Dealer Exclusion
"Broker-dealer" as defined in Section 61-1-13(3) excludes a person who is resident in Canada, has no office or other physical presence in this state, and complies with the following conditions:
(1) Only effects or attempts to effect
transactions in securities:
(1)(a) 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;
(1)(b) 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
(1)(c) 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) files a
notice in the form of his current application required by the jurisdiction in
which their head office is located and a consent to service of
process;
(3) is a member of a
self-regulatory organization or stock exchange in Canada;
(4) Maintains his provincial or territorial
registration and his membership in a self-regulatory organization or stock
exchange in good standing;
(5)
Discloses to his clients in this state that he is not subject to the full
regulatory requirements of the Utah Uniform Securities Act; and
(6) Is not in violation of Section
61-1-1
and all rules promulgated thereunder.
(D) Transactional Securities Exemption
The Division finds that registration is not necessary or appropriate for the protection of investors in connection with an offer or sale of a security in a transaction effected by a person excluded from the definition of broker-dealer under Paragraph (C)
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