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RULE §139.21Dealer, Agent, and Securities Exemptions for Canadian Accounts

(a) The State Securities Board, pursuant to the Texas Securities Act, §§5.T and 12.C, exempts Canadian dealers and agents from the registration requirements of the Texas Securities Act, when such dealers and agents comply with subsections (b) and (c) of this section and are conducting a transaction in a Canadian self-directed tax advantaged retirement plan of which the holder or contributor is a person from Canada who is present in this state or when conducting a transaction in the Canadian securities account of a Canadian citizen who is temporarily present in this state and with whom the dealer or agent has a preexisting client relationship.

(b) A Canadian dealer must be a member of a self-regulatory organization, a stock exchange in Canada, or the bureau "des services financiers" of Quebec, and maintain provincial or territorial registration and membership in a Canadian self-regulatory organization or stock exchange in good standing. An agent must be registered and in good standing in the jurisdiction from which he or she is effecting transactions into this state and maintain registration in such jurisdiction in good standing.

(c) Any Canadian dealer or agent relying on this exemption shall, upon written request, furnish to the Securities Commissioner any information relative to a transaction covered by this section that the Commissioner deems relevant.

(d) The State Securities Board, pursuant to the Texas Securities Act, §5.T, exempts from the securities registration requirements of the Texas Securities Act, §7, the offer and sale of any securities effected by a Canadian dealer pursuant to this section.

(e) The Texas Securities Act prohibits fraud or fraudulent practices in connection with the sale or offer for sale of securities covered by this exemption.

Source Note: The provisions of this §139.21 adopted to be effective November 26, 2001, 26 TexReg 9585

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