Idaho State Statutes - Idaho Attorney Directory

(a)
Registration requirement. It is unlawful for a person to transact business in
this state as a broker-dealer unless the person is registered under this
chapter as a broker-dealer or is exempt from registration as a broker-dealer
under subsection (b) or (d) of this section.
(b) Exemptions from registration. The following persons are exempt from
the registration requirement of subsection (a) of this section:
(1) A broker-dealer without a place of business in this state if its only
transactions effected in this state are with:
(A) The issuer of the securities involved in the transactions;
(B) A broker-dealer registered as a broker-dealer under this chapter
or not required to be registered as a broker-dealer under this
chapter;
(C) An institutional investor;
(D) A nonaffiliated federal covered investment adviser with
investments under management in excess of one hundred million dollars
($100,000,000) acting for the account of others pursuant to
discretionary authority in a signed record;
(E) A bona fide preexisting customer whose principal place of
residence is not in this state and the person is registered as a
broker-dealer under the securities exchange act of 1934 or is not
required to be registered under the securities exchange act of 1934
and is registered under the securities act of the state in which the
customer maintains a principal place of residence;
(F) A bona fide preexisting customer whose principal place of
residence is in this state but who was not present in this state when
the customer relationship was established, if:
(i) The broker-dealer is registered under the securities
exchange act of 1934 or is not required to be registered under
the securities exchange act of 1934 and is registered under the
securities laws of the state in which the customer relationship
was established and where the customer had maintained a
principal place of residence; and
(ii) Within forty-five (45) days after the customer's first
transaction in this state, the person files an application for
registration as a broker-dealer in this state and a further
transaction is not effected more than seventy-five (75) days
after the date on which the application is filed or, if earlier,
the date on which the administrator notifies the person that the
administrator has denied the application for registration or has
stayed the pendency of the application for good cause;
(G) Not more than three (3) customers in this state during the
previous twelve (12) months, in addition to those customers specified
in subsections (b)(1)(A) through (b)(1)(F) and subsection (b)(1)(H)
of this section, if the broker-dealer is registered under the
securities exchange act of 1934 or not required to be registered
under the securities exchange act of 1934 and is registered under the
securities act of the state in which the broker-dealer has its
principal place of business; and
(H) Any other person exempted by a rule adopted or an order issued
under this chapter; and
(2) A person that deals solely in United States government securities and
is supervised as a dealer in government securities by the board of
governors of the federal reserve system, the comptroller of the currency,
the federal deposit insurance corporation, or the office of thrift
supervision.
(c) Limits on employment or association. It is unlawful for a
broker-dealer, or for an issuer engaged in offering, offering to purchase,
purchasing, or selling securities in this state, directly or indirectly, to
employ or associate with an individual to engage in an activity related to
securities transactions in this state if the registration of the individual is
suspended or revoked or the individual is barred from employment or
association with a broker-dealer, an issuer, an investment adviser, or a
federal covered investment adviser by an order of the securities regulator of
a state, the securities and exchange commission, or a self-regulatory
organization. A broker-dealer or issuer does not violate this subsection if
the broker-dealer or issuer did not know, and in the exercise of reasonable
care could not have known, of the suspension, revocation or bar. Upon request
from a broker-dealer or issuer and for good cause, an order under this chapter
may modify or waive, in whole or in part, the application of the prohibitions
of this subsection to the broker-dealer.
(d) Foreign transactions. A rule adopted or an order issued under this
chapter may permit:
(1) A broker-dealer that is registered in Canada or other foreign
jurisdiction and that does not have a place of business in this state to
effect transactions in securities with or for, or attempt to effect the
purchase or sale of any securities by:
(A) An individual from Canada or other foreign jurisdiction who is
temporarily present in this state and with whom the broker-dealer had
a bona fide customer relationship before the individual entered the
United States;
(B) An individual from Canada or other foreign jurisdiction who is
present in this state and whose transactions are in a self-directed
tax advantaged retirement plan of which the individual is the holder
or contributor in that foreign jurisdiction; or
(C) An individual who is present in this state, with whom the
broker-dealer customer relationship arose while the individual was
temporarily or permanently resident in Canada or the other foreign
jurisdiction; and
(2) An agent who represents a broker-dealer that is exempt under this
subsection to effect transactions in securities or attempt to effect the
purchase or sale of securities in this state as permitted for a
broker-dealer described in subsection (b)(1) of this subsection [section].

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