Canadian Broker-Dealers And Sales Representatives Exemption

A broker-dealer and its authorized agents are exempt from the registration requirements of Sections 58-13C-401A and 58-13C-402A if: A. the broker-dealer and its authorized agents are located in Canada; B. the broker-dealer and its authorized agents are licensed or registered pursuant to the laws of one or more Canadian provinces or territories; C. the broker-dealer has no place of business in this state; and D. the transactions in this state are limited to the following: (1) transactions with a person who is temporarily in this state and with whom the Canadian broker- dealer had a bona fide broker-dealer-client relationship before the person entered the United States; or (2) transactions with a person who is present in this state in relation to a self-directed tax advantaged retirement plan in Canada of which the person is the holder or contributor. [12.11.2.17 NMAC - Rp, 12.11.2.17 NMAC, 1-1-2010] 12.11.2.18 NET CAPITAL REQUIREMENTS AND AGGREGATE INDEBTEDNESS LIMITATIONS: A. Every broker-dealer, whether or not subject to Rule 15c3-1 of the Securities Exchange Act of 1934, shall maintain net capital in such minimum amounts as are designated in that rule for the activities to be engaged in by a broker-dealer in this state. B. The aggregate indebtedness of each broker-dealer whether or not subject to rule 15c3-1 of the Securities Exchange Act of 1934 shall not exceed the levels prescribed in that rule. C. If a broker-dealer is an individual, the person shall segregate from personal capital in a separate account an amount sufficient to satisfy the net capital requirement, and the amount so segregated shall be utilized solely for the business for which the broker-dealer is registered. D. The director may by order exempt any broker-dealer from the provisions of this rule, either unconditionally or upon specified conditions, if by reason of the broker-dealer's membership on a national securities exchange or the special nature of its business and its financial position, and the safeguards that have been established for the protection of customers’ funds and securities, the provisions are not necessary in the public interest or for the protection of investors.