Can U.S. RIAs Keep Clients Who Move to Canada or Mexico? Here's What You Need to Know

U.S.-based Registered Investment Adviser (RIA) firms often encounter a situation where an existing client relocates abroad, particularly to nearby countries like Canada or Mexico. Does this mean the firm must register with foreign regulators? Fortunately, both countries offer exemptions that may allow continued service, though conditions vary significantly.

Serving Clients Who Move to Canada

Canada's securities regulation is administered at the provincial level, harmonized by the Canadian Securities Administrators (CSA). For U.S. RIAs, the International Adviser Exemption under NI 31-103 is the most relevant.

Key Conditions:

• Permitted Clients Only: The client must be a high-net-worth individual or institution.

• Primarily Foreign Securities: The advice should focus on non-Canadian securities.

• No Office in Canada: The adviser cannot have a physical presence there.

• ≤10% of Global Revenue from Canada: Limits Canadian business share.

• Disclosures and Filings: The adviser must file Form 31-103F2 and provide written disclosure to the client.

  
  

Provincial Notes:

• Ontario: Requires annual fees.

• Québec: Needs client acknowledgment of unregistered status.

• British Columbia and others: Generally align with NI 31-103.

For existing clients who move provinces (within Canada), a mobility exemption exists—but it applies only to advisers already registered in one Canadian province.

Serving Clients Who Move to Mexico

Mexico’s financial regulator, the Comisión Nacional Bancaria y de Valores (CNBV), requires that investment advisers be Mexican corporations registered with the CNBV. However, exceptions are tolerated in cross-border scenarios.

Conditions to Avoid Registration:- No Presence in Mexico: No office, branch, or agents.- No Public Solicitation: Services must not be advertised or promoted to the public.- Pre-Existing Client Relationship: The client must have initiated the relationship before relocating.

If a U.S. RIA simply continues servicing a client remotely, without any marketing or expansion into Mexico, the CNBV generally considers this acceptable without requiring registration.

Final Thoughts

RIAs must tread carefully when continuing service for clients abroad. Canada provides a formal path via its International Adviser Exemption, while Mexico allows informal cross-border service—so long as solicitation is avoided.

Advisers should ensure their compliance teams handle any required filings, maintain proper disclosures, and closely monitor evolving regulations.