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RENEWING REGISTRATIONS

All state registrations expire on December 31, and all broker dealers, investment advisers, and agents are required to file a renewal application and pay a renewal fee.

CANADIAN FIRMS AND AGENTS

Canadian firms and agents may engage in securities transactions with financial institutions and existing customers without registering under the USA as long as they do not maintain an office within the state. A Canadian broker dealer or agent who is a member in good standing with a Canadian securities regulator is allowed to register through a simplified registration process. The state registration will become effective 30 days after the application has been received with the consent to service process. The Canadian broker dealer must advise the state of any disciplinary action.

INVESTMENT ADVISER STATE REGISTRATION

It is unlawful for an investment adviser to conduct securities business without being duly registered or exempt from registration. State registration exemptions are provided for investment advisers who:

• Are federally registered.

• Manage portfolios for investment companies. . Manage portfolios in excess of $110,000,000.

• Have no office in the state and conduct business exclusively with financial institutions.

• Have no office in the state and offer advice to no more than five clients in any 12-month period. This is known as the de minimis exemption.

If an investment adviser with no office in the state advertises to the public the ability to meet and offer investment advisory services with clients in a hotel or other temporary location, then the investment adviser is required to register with the state.

An investment adviser will not be deemed to have a place of business in a state where it does not maintain an office simply by virtue of the fact that the firm's website is accessible from that state so long as the following conditions are met:

• The firm's website clearly states that the firm may only conduct business in states where it is properly registered to do so.

• The firm's website only provides general information about the firm and does not provide specific investment advice.

• The firm may not respond to Internet inquiries with the intent to solicit business without first meeting the registration requirements in the state of the prospective customer.

 
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