(February 22 – 18:10 ET) – California may be the next jurisdiction to adopt relief allowing Canadian brokers to deal with their snowbird clients.

The Investment Dealers Association says it has approached regulators in California with a proposal for relief from registration requirements, and it says it is “optimistic that California securities regulators will adopt an exemptive model.”

The IDA continues to approach other states that have not yet granted relief in the wake of the federal SEC’s move to allow it. It says it also encourages individual firms to join the lobbying effort, and has asked the Canadian embassy to do so, too.

The latest state to propose relief, allowing either special limited registration or an exemption from registration for IDA members, when dealing with the RRSP accounts of clients who are temporarily resident in the U.S. is Arizona.

The IDA notes that the Arizona Corporation Commission has published a rule proposing an exemption, the rule goes out for 30-days comment in early March. “IDA efforts were successful in convincing the authorities to provide the exemption through a notification filing, as opposed to a more onerous registration and renewal process,” it says.
-IE Staff