In a state-administrator case study, the scenario starts here. Prioritize the registration trigger and ignore irrelevant noise. Under NASAA model rules, a Canadian broker-dealer may be exempt from state registration when dealing with a Canadian citizen who temporarily resides in a U.S. state, provided:

Why B — The client relationship existed before the client moved to the U.S. and the broker-dealer does not solicit new U.S. clients

Under NASAA model rules for Canadian broker-dealers, an exemption from state registration may be available when the client relationship was established before the Canadian citizen moved to the U.S. and the broker-dealer does not direct solicitation efforts at new U.S. clients. This accommodates existing cross-border relationships while maintaining investor protection for U.S. residents. State-law analysis leads to the same conclusion despite the alternate scenario.