The Investment Dealers Association is announcing that the Arizona Corporation Commission has approved a rule that provides regulatory relief for Canadian investment dealers dealing with clients temporarily resident in Arizona or Arizona-based clients holding RRSP accounts.

The rule is effective immediately

The IDA has worked with the Arizona regulators since mid-2000 to obtain this relief. The so-called “snowbird” exemptions are contained in a new rule adopted by the Arizona securities regulators. It allows Canadian dealers and their salespersons to deal with Canadian snowbirds and RRSP accounts in Arizona without registering in Arizona and provides that any securities sold to Canadian snowbirds and RRSP accounts will be exempt from Arizona registration requirements.

The Arizona rule requires the Canadian dealers and their salespersons relying on these exemptions to meet certain conditions such as filing an annual notice with Arizona, maintaining their Canadian registration and SRO membership in good standing and disclosing to their qualified Arizona clients they are not subject to Arizona registration.

Joe Oliver, president & CEO of the IDA, confirmed that these snowbird exemptions are a major milestone in IDA efforts to obtain regulatory relief for Canadian dealers in the United States. “This exemption will permit Canadian residents to continue to deal with their Canadian investment dealers, who know their financial circumstances and investment objectives, and are expert in the securities in their retirement portfolios.”