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← Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questionhardCanadian BD—Scope of Exemption

Which of the following situations is NOT protected by the Canadian BD exemption under the USA?

  1. AA Canadian BD services a Canadian client temporarily residing in the U.S.
  2. BA Canadian BD solicits U.S. residents who have never lived in Canada for new accounts.✓ Correct answer
  3. CA Canadian BD maintains an existing RRSP for a former Canadian resident now living in the U.S.
  4. DA Canadian BD processes unsolicited trades for a Canadian client visiting the U.S.
Explanation

Why B — A Canadian BD solicits U.S. residents who have never lived in Canada for new accounts.

The exemption (USA §401(b)(2)(B)) applies only to Canadian clients or former Canadian residents with existing retirement accounts. Soliciting new U.S.-resident clients is not permitted. Options A, C, and D are expressly included.

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