Product and Software: This article applies to all ArubaOS versions (pre 5.x and post 5.x).
Do not confuse "controller master-local" with where the APs terminate (LMS) because these two are very different. A master-local configuration across international boundaries is valid.
"Unrestricted Regulatory Domain" master: A "Restricted Regulatory Domain - US" controller ignores non-US regulatory domains sent from an "unrestricted" master controller.
"Restricted Regulatory Domain" master: You can configure regulatory domain profiles for any country, even on a restricted controller. However, you cannot have them in use on a restricted controller where the country does not match. (You cannot apply these profiles to APs on that controller). So you could have a "Restricted Regulatory Domain-US" master with a regulatory domain profile configured for France and use that for APs that are on the local controller in France.