By James Langton
(November 1- 12:45 ET ) – The Investment Dealers Association is lobbying Arizona join the other U.S. states that have already made the changes necessary to allow Canadian investment dealers to work with snowbirds.
The IDA says that it has been active in encouraging individual U.S. states to provide the necessary regulatory relief to allow Canadian brokers to trade the RSP accounts of their clients resident in the U.S. It says that 20 U.S. states have adopted the necessary securities exemptions under state law. The exemption have also been adopted by the North American Securities Administrators Association and the Securities and Exchange Commission.
Arizona has issued for comment a proposal to provide relief for Canadian brokers. However, the IDA says the proposed rules “do not provide the necessary exemption for Canadian securities in the RSP accounts and would also provide Canadian dealers with a limited registration procedure rather than an exemption”.
The IDA, through its U.S. counsel, has submitted a response to the proposal arguing for the appropriate securities exemption and an exemption for Canadian brokers dealing with RSP accounts.
It also has enlisted the Canadian Embassy to write a letter on its behalf to the Arizona Corporation Commission.
The IDA says it will take similar initiatives with other U.S. states that have not yet agreed to the necessary securities exemptions for transactions in RRSP accounts.