Canadian Broker-Dealers

The Administrator of the Division of Securities issued an order effective May 31, 2002 to allow certain Canadian broker-dealers and their sales agents, in a limited context described below, to transact securities business and effect securities transactions with certain customers without being required to be licensed in this state.

A broker-dealer as defined in section 551.02(3), Wis. Stats., does not include a broker-dealer located in Canada that has no office or other physical presence in this state as long as the broker-dealer follows the following:

1. The broker-dealer effects or attempts to effect transactions in securities only with persons who are either in this state temporarily and who, before entering this state were a) Canadian residents with an established business-client relationship with the broker-dealer or b) person's who are present in this state and transactions are in the person's own self-directed, tax advantaged retirement plan in Canada.
   
   
2. The broker-dealer is also registered as a member of a self-regulatory organization in Canada, a stock exchange in Canada or the bureau des services financiers.
   
   
3. The broker-dealer remains in good-standing in its provincial or territorial registration in Canada as well as registration of membership in entities mentioned in 2 above.
   
   
4. The broker-dealer discloses to each customer in this state that the broker-dealer and its agents are not licensed under the Wisconsin Uniform Securities Law.

No filings or approvals are required from the Division if the above provisions are complied with.