{"data":{"id":"us-dc/d.c.-code-31-5602.10","jurisdiction":"us-dc","citation":"D.C. Code § 31-5602.10","heading":"Limited registration of Canadian broker-dealers and agents.","body":"(a)\nA Canadian broker-dealer may be licensed under this section if the broker-dealer:\n(1)\nHas its principal office located in a province or territory of Canada that provides at least equivalent registration for a broker-dealer that is resident in the United States;\n(2)\nIs resident in Canada and does not have an office or physical presence in the United States;\n(3)\nFiles an application in the form required by the jurisdiction in which the broker-dealer has its principal office;\n(4)\nFiles a written consent to service of process under § 31-5607.06;\n(5)\nIs registered as a broker or dealer in good standing in the jurisdiction from which the broker-dealer is effecting transactions in the District and files evidence of the registration; and\n(6)\nIs a member of a self-regulating organization or stock exchange in Canada.\n\n(b)\nAn agent may be licensed under this section if the agent represents a Canadian broker-dealer that is licensed under this section, and the agent:\n(1)\nFiles an application in the form required by the jurisdiction in which the broker-dealer has its principal office;\n(2)\nFiles a written consent to service of process under section § 31-5607.06; and\n(3)\nIs registered and files evidence of good standing in the jurisdiction from which the agent is effecting transactions into the District.\n\n(c)\nIf no denial order is in effect and no proceeding is pending under § 31-5602.07, the license shall become effective no later than noon on the 30th day after an application is filed. If the application is incomplete, the Commissioner may request additional information from the applicant and delay the effective date for 30 days from the date of receipt of the request for information.\n\n(d)\n(1)\nA broker-dealer licensed under this section may effect transactions in securities with or for or induce or attempt to induce the purchase or sale of a security by a person from Canada who is:\n(A)\nTemporarily resident in the District and with whom the Canadian broker-dealer had a bona fide broker-dealer-client relationship before the person entered the United States; or\n(B)\nA resident in the District and whose transactions are in a self- directed tax-advantaged retirement plan in Canada of which the person is the holder or contributor.\n(2)\nA Canadian broker-dealer or agent licensed under this section shall not effect transactions in the District unless it is:\n(A)\nAuthorized in paragraph (1) of this subsection;\n(B)\nWith or through:\n(i)\nThe issuers of the securities involved in the transactions;\n(ii)\nOther broker-dealers; or\n(iii)\nBanks, savings institutions, trust companies, insurance companies, investment companies as defined in the Investment Company Act of 1940, approved August 22, 1946 (54 Stat. 789; 15 U.S.C. § 80a-1 et seq.), pension or profit-sharing trusts, or other financial institutions or institutional investor, whether acting for themselves or as trustees; or\n(C)\nAs otherwise permitted by the Commissioner in any rule or order.\n\n(e)\nAn agent licensed under this section may effect transactions in securities in the District of Columbia as permitted for the Canadian broker-dealer licensed under this section.\n\n(f)\nA Canadian broker-dealer licensed under this section shall:\n(1)\nMaintain provincial or territorial registration and membership in good standing in a self-regulating organization or stock exchange;\n(2)\nProvide the Commissioner on request with books and records relating to its business in the District as a broker-dealer;\n(3)\nInform the Commissioner promptly of any criminal action taken against the broker-dealer or of any finding or sanction imposed on the broker-dealer as a result of regulatory action, including that of a self-regulating organization, involving fraud, theft, deceit, misrepresentation, or similar conduct; and\n(4)\nDisclose to its clients in the District that the broker-dealer and its agents are not subject to the full regulatory requirements of the District.\n\n(g)\nAn agent of a Canadian broker-dealer licensed under this section shall:\n(1)\nMaintain provincial or territorial registration in good standing; and\n(2)\nInform the Commissioner promptly of any criminal action taken against the agent or of any finding or sanction imposed on the broker-dealer or agent as a result of regulatory action, including that of a self-regulating organization, involving fraud, theft, deceit, misrepresentation, or similar conduct.\n\n(h)\nRenewal applications for Canadian broker-dealers and agents under this section shall be filed annually before December 1 and may be made by filing the most recent renewal application, if any, filed in the jurisdiction in which the broker-dealer has its principal office or, if a renewal application is not required, the most recent application filed under subsection (a)(1) or (b)(1) of this section.\n\n(i)\nAn applicant for an initial license or renewal under this section shall pay the fee for broker-dealers and agents required by rules issued by the Commissioner.\n\n(j)\nA Canadian broker-dealer or agent licensed under this section and acting in accordance with the limitations in subsection (d) or (e) of this section shall be exempt from all of the requirements of this chapter, except the provisions of subchapters V and VI.","path":["Title 31. Insurance and Securities.","Chapter 56. Securities.","Subchapter II. Broker-Dealers, Agents, Investment Advisers and Investment Adviser Representatives."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/31-5602.10","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"93a600386c7511afd3890aaa8f607aae7564643928989ac45649bd6652c785ca","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-31-5602.09","next":"us-dc/d.c.-code-31-5602.11"},"notice":"GroundRules: Original legal text. Not legal advice."}