Regulatory Alerts2011-03-10
Statement of Policy on Exclusions for Canadian Broker-Dealers and Agents
The Office of the Louisiana Commissioner of Securities has adopted a policy excluding Canadian broker-dealers and agents without physical offices in the state from Louisiana’s statutory definitions, provided they maintain Canadian registration, belong to a self-regulatory organization, and disclose their non-subjection to full state regulation. This exclusion grants an automatic exemption from Louisiana securities registration for transactions conducted with Canadian nationals temporarily visiting the state or holding Canadian self-directed tax-advantaged retirement accounts, provided a prior business relationship exists and the customer intends to return to Canada. Activities falling outside these specific parameters remain subject to full state registration, enforcement actions, and civil liability under Louisiana’s anti-fraud provisions.