Chapter DFI-Sec 5

DFI-Sec 5.07(2)(b) (b) An agent of a broker-dealer that is also registered as an investment adviser or notice filed as a federal covered investment adviser shall also register as an investment adviser representative of that investment adviser or federal covered investment adviser pursuant to s. 551.404, Stats.

DFI-Sec 5.07 History History: Cr. Register, December, 1977, No. 264, eff. 1-1-78; am., Register, December, 1980, No. 300, eff. 1-1-81; am. (1), Register, December, 1994, No. 468, eff. 1-1-95; am. (1) and (2), cr. (3) and (4), Register, December, 1998, No. 516, eff. 1-1-99; emerg. r. and recr. eff. 1-1-01; CR 01-025: r. and recr., Register July 2001, No. 547 eff. 8-1-01; CR 02-102: am. (1), renum. (2) to be (2) (a) and am., cr. (2) (b), Register December 2002 No. 564, eff. 1-1-03; correction in (2) (b) made under s. 13.93 (2m) (b) 7., Stats., Register December 2004 No. 588; CR 08-077: am. (title), (1) and (2) (a), r. and recr. (2) (b) Register December 2008 No. 636, eff. 1-1-09.

DFI-Sec 5.08 DFI-Sec 5.08 Withdrawal of registration.

DFI-Sec 5.08(1) (1) An application for withdrawal from the status of a registered investment adviser under s. 551.409, Stats., shall be filed with the investment adviser registration depository on Form ADV-W.

DFI-Sec 5.08(2) (2) An application for withdrawal from the status of a registered investment adviser representative shall be filed with the central registration depository on Form U-5 within 30 days of the termination of the representative’s employment pursuant to s. 551.409, Stats.

DFI-Sec 5.08 History History: Cr. Register, December, 1977, No. 264, eff. 1-1-78; am. (1) and (2), Register, December, 1979, No. 288, eff. 1-1-80; am. (2), Register, December, 1982, No. 324, eff. 1-1-83; am. Register, December, 1994, No. 468, eff. 1-1-95; am. (2), Register, December, 1998, No. 516, eff. 1-1-99; correction in (1) made under s. 13.93 (2m) (b) 7., Stats., Register, August, 1999, No. 524; CR 01-025: r. and recr., Register July 2001, No. 547 eff. 8-1-01; CR 02-102: am. (2), Register December 2002 No. 564, eff. 1-1-03; CR 08-077: am. Register December 2008 No. 636, eff. 1-1-09.

DFI-Sec 5.09 DFI-Sec 5.09 Denial, suspension, revocation and censure.

DFI-Sec 5.09(1) (1) Any order denying, suspending or revoking the registration of an investment adviser or an investment adviser representative or censuring a registrant may include such other sanctions as the division finds appropriate.

DFI-Sec 5.09(2) (2) For purposes of s. 551.412 (1), Stats., the public interest or protection of investors does not require a showing of ongoing harm to summarily deny an application for a registration as an investment adviser or investment adviser representative.

DFI-Sec 5.09 History History: Cr. Register, December, 1977, No. 264, eff. 1-1-78; am. Register, December, 1998, No. 516, eff. 1-1-99; CR 08-077: renum. to be (1) and am., cr. (2) Register December 2008 No. 636, eff. 1-1-09.

DFI-Sec 5.10 DFI-Sec 5.10 Electronic filing.

DFI-Sec 5.10(1) (1) Each investment adviser shall file a copy of its current form ADV Parts 1 and II electronically with the Investment Adviser Registration Depository.

DFI-Sec 5.10(2) (2) Any documents or fees required to be filed with the division that are not permitted to be filed with, or cannot be accepted by, the investment adviser registration depository or the central registration depository shall be filed directly with the division.

DFI-Sec 5.10(3) (3) Each investment adviser that is registered in this state on January 1, 2011 shall file a copy of its current form ADV Part 2 electronically with the Investment Adviser Registration Depository by no later than July 1, 2011.

DFI-Sec 5.10 History History: emerg. cr. eff. 1-1-01; CR 01-025: cr. Register July 2001, No. 547 eff. 8-1-01; CR 02-102: am. Register December 2002 No. 564, eff. 1-1-03; CR 08-077: am. Register December 2008 No. 636, eff. 1-1-09; CR 10-062: r. and recr. Register September 2010 No. 657, eff. 10-1-10.

DFI-Sec 5.11 DFI-Sec 5.11 Federal covered investment adviser notice filing procedure.

DFI-Sec 5.11(1) (1) The notice filing for a federal covered investment adviser pursuant to s. 551.405, Stats., shall be filed with the investment adviser registration depository on Form ADV. A notice filing for a federal covered investment adviser shall be deemed filed when the fee on deposit with the investment adviser registration depository has been allocated to the division. Any documents or fees required to be filed with the division that are not permitted to be filed with, or cannot be accepted by, the investment adviser registration depository shall be filed directly with the division.

DFI-Sec 5.11(2) (2) A federal covered investment adviser shall file all amendments to its Form ADV with the investment adviser registration depository according to the instructions to Form ADV.

DFI-Sec 5.11(3) (3) Each federal covered investment adviser seeking renewal of its notice filing shall file for renewal with the investment adviser registration depository according to the investment adviser registration depository’s schedule and instructions. An application for renewal of a notice filing under this paragraph shall be deemed filed under s. 551.405, Stats., when the fee on deposit with the investment adviser registration depository has been allocated to the division.

DFI-Sec 5.11(4) (4) Each federal covered investment adviser shall pay its branch office renewal fees prescribed in s. 551.614 (2), Stats., to the division by December 1 of each year.

DFI-Sec 5.11 History History: emerg. cr. eff. 1-1-01; CR 01-025: cr. Register July 2001, No. 547 eff. 8-1-01; CR 02-102: am. (3), Register December 2002 No. 564, eff. 1-1-03; CR 08-077: am. (title) and (1) to (3), cr. (4) Register December 2008 No. 636, eff. 1-1-09.

DFI-Sec 5.12 DFI-Sec 5.12 Transition filing. An agent who is registered in this state on December 31, 2008 for a registered broker-dealer that was also approved to act as an investment adviser in this state and who also met the examination requirement in s. DFI-Sec 5.01 (3), shall make a transition filing electronically with the investment adviser registration depository not later than June 1, 2009.

DFI-Sec 5.12 History History: emerg. cr. eff. 1-1-01; CR 01-025: cr. Register July 2001, No. 547 eff. 8-1-01; CR 02-102: am. (4), Register December 2002 No. 564, eff. 1-1-03; CR 08-077: r. and recr. Register December 2008 No. 636, eff. 1-1-09.

DFI-Sec 5.13 DFI-Sec 5.13 Registration exemptions.

DFI-Sec 5.13(1) (1) For purposes of ss. 551.403 (2) and 551.404 (2), Stats., an investment adviser or an investment adviser representative is exempt from the registration requirement if its only transactions effected in this state are with:

DFI-Sec 5.13(1)(a) (a) This state or any of its agencies or political subdivisions or the state investment board.

DFI-Sec 5.13(1)(b) (b) The federal government or any of its agencies or instrumentalities.

DFI-Sec 5.13(2) (2) A solicitor is not required to be registered as an investment adviser or as an investment adviser representative if the solicitor is in compliance with all requirements of s. DFI-Sec 5.06 (25), and the solicitor satisfies par. (a) or (b).

DFI-Sec 5.13(2)(a) (a) Provides solicitation activities that are impersonal in nature as set forth in s. DFI-Sec 5.06 (25) (b) and the solicitor to whom a cash fee or any other economic benefit is paid for such referral does not trigger any of the following as being a person:

DFI-Sec 5.13(2)(a)1. 1. Subject to an order of the U.S. Securities & Exchange Commission issued under section 203(f) of the Investment Advisers Act of 1940;

DFI-Sec 5.13(2)(a)2. 2. Subject to an order of the administrator, the securities administrator of any other state, the U.S. Securities and Exchange Commission, or any self regulatory organization denying, suspending, or revoking registration as a broker-dealer, agent, investment adviser, or investment adviser representative or barring the person from the securities or advisory industry or associating or affiliating with the securities or advisory industry, entered after notice and opportunity for hearing;

DFI-Sec 5.13(2)(a)3. 3. Convicted within the previous ten years of any felony, or any misdemeanor involving conduct described in section 203(e)(2)(A) through (D) of the Investment Advisers Act of 1940;

DFI-Sec 5.13(2)(a)4. 4. Convicted within the previous ten years of any felony, or any misdemeanor involving conduct described in s. 551.412 (4) (c), Stats.;

DFI-Sec 5.13(2)(a)5. 5. Found by the U.S. Securities & Exchange Commission to have engaged, or has been convicted of engaging in, any of the conduct specified in section 203(e)(1), (5) or (6) of the Investment Advisers Act of 1940;

DFI-Sec 5.13(2)(a)6. 6. Found by the administrator to have engaged, or has been convicted of engaging in, any of the conduct specified in s. 551.412 (4) (a), (b) or (f), Stats.;

DFI-Sec 5.13(2)(a)7. 7. Subject to an order, judgment or decree described in section 203(e)(4) of the Investment Advisers Act of 1940;

DFI-Sec 5.13(2)(a)8. 8. Subject to an order, judgment or decree described in s. 551.412 (4) (d), Stats.

DFI-Sec 5.13(2)(b) (b) Receives an order of the administrator waiving the registration requirement.

DFI-Sec 5.13(3) (3) For purposes of s. 551.102 (16) (c), Stats., “associated with” does not include third party solicitors whose only relationship with a federal covered investment adviser is a contract to solicit or refer clients in return for compensation.

DFI-Sec 5.13(4) (4) A supervised person of a federal covered investment adviser notice filed in this state is exempt from the registration requirement in s. 551.404 (1), Stats., if that supervised person has no place of business in this state.

DFI-Sec 5.13 History History: CR 08-077: cr. Register December 2008 No. 636, eff. 1-1-09; CR 09-056: cr. (4) Register December 2009 No. 648, eff. 1-1-10; CR 10-062: r. and recr. (2) Register September 2010 No. 657, eff. 10-1-10.