US Tax restrictions on NEO listed stocks

[GDG]

Hi Forum!
Hope you can help me clarify an issue that arose when I tried to purchase the stock Amazon on the Neo exchange. This exchange deals with the CDRs--the Canadian Depositary Receipts. The CDRs offer the US stocks in CDN dollars and hedges the US/CDN monetary exchange. Here's the issue...my on-line broker informed that the IRS doesn't allow US citizens to hold CDRs. Has anyone checked into this? Is it true? As a dual US/CDN citizen that, of course, files tax returns for both countries, could I be exempt from this restriction.
As always any help the form can provide will be greatly appreciated.

[nelsona]

First off, it would not be the IRS that would decide this. It might be the SEC (if you live in US), or its provincial equivalent (if you live in canada), so your broker needs to clarify his remarks.

The SEC might not allow US RESIDENTS to buy CDRs, but that would not affect US Citizens living in Canada, as SEC has no jurisdiction on Cdn residents trading in canada.