DFI-Sec 5.06(22) (22) Disclosing the identity, investments, or other financial information of any client or former client unless required by law to do so, or unless consented to by the client.

DFI-Sec 5.06(23) (23) Engaging in conduct or any act, indirectly or through or by any other person, which would be unlawful for such person to do directly under ch. 551, Stats., or any rule thereunder.

DFI-Sec 5.06(24) (24) Using any term or abbreviation thereof in a manner that misleadingly states or implies that a person has special expertise, certification, or training in financial planning, including the misleading use of a senior-specific certification or designation as set forth in ch. DFI-Sec 10.

DFI-Sec 5.06(25) (25) Paying a cash fee or any other economic benefit, directly or indirectly, in connection with solicitation activities unless the requirements of pars. (a) through (d) are met.

DFI-Sec 5.06(25)(a) (a) The solicitor is registered as an investment adviser or investment adviser representative or is exempt from registration as provided for in s. DFI-Sec 5.13 (2).

DFI-Sec 5.06(25)(b) (b) The cash fee or any other economic benefit is paid by the investment adviser with respect to solicitation activities that are impersonal in nature in that they are provided solely by means of:

DFI-Sec 5.06(25)(b)1. 1. Written material or oral statements which do not purport to meet the objectives or needs of the specific client; or

DFI-Sec 5.06(25)(b)2. 2. Statistical information containing no expressions of opinions as to the merits of particular securities or investment advisers; or

DFI-Sec 5.06(25)(b)3. 3. Any combination of the foregoing services.

DFI-Sec 5.06(25)(c) (c) The cash fee or any other economic benefit is paid pursuant to a written agreement to which the investment adviser is a party and all of the following conditions are met:

DFI-Sec 5.06(25)(c)1. 1. The written agreement;

DFI-Sec 5.06(25)(c)1.a. a. Describes the solicitation or referral activities to be engaged in by the solicitor on behalf of the investment adviser and the cash fee or any other economic benefit to be received for such activities; and

DFI-Sec 5.06(25)(c)1.b. b. Contains an undertaking by the solicitor to perform its duties under the agreement in a manner consistent with the instructions of the investment adviser and the provisions of ch. 551, Stats., and rules there under; and

DFI-Sec 5.06(25)(c)1.c. c. Requires that the solicitor, at the time of any solicitation or referral activities for which a cash fee or any other economic benefit is paid or to be paid by the investment adviser, provide the client with a current copy of the investment adviser’s disclosure document required under s. DFI-Sec 5.05 (8) and a separate disclosure statement as described in par. (d), either in paper or electronic format; and

DFI-Sec 5.06(25)(c)2. 2. The investment adviser receives from the client, prior to or at the time of entering into any written investment advisory contract, a signed and dated acknowledgement of receipt of the investment adviser’s written disclosure statement and the solicitor’s written disclosure document; and

DFI-Sec 5.06(25)(c)3. 3. The investment adviser makes a bona fide effort and has a reasonable basis for believing that the solicitor has complied with the agreement; and

DFI-Sec 5.06(25)(c)4. 4. The requirements in subds. 1., 2. and 3. shall not apply if the solicitor is any of the following:

DFI-Sec 5.06(25)(c)4.a. a. A partner, officer, director or employee of such investment adviser; or

DFI-Sec 5.06(25)(c)4.b. b. A partner, officer, director or employee of a person that controls, is controlled by, or is under common control with such investment adviser, provided the status of the solicitor is disclosed to the client at the time of the solicitation or referral.

DFI-Sec 5.06(25)(d) (d) The separate written disclosure document required to be furnished by the solicitor to the client pursuant to par. (c) 1. c. shall contain the following information:

DFI-Sec 5.06(25)(d)1. 1. The name of the solicitor;

DFI-Sec 5.06(25)(d)2. 2. The name of the investment adviser;

DFI-Sec 5.06(25)(d)3. 3. The nature of the relationship, including any affiliation, between the solicitor and the investment adviser;

DFI-Sec 5.06(25)(d)4. 4. A statement that the solicitor will be compensated for solicitation or referral services by the investment adviser;

DFI-Sec 5.06(25)(d)5. 5. The terms of the compensation arrangement including a description of the cash fee or any other economic benefit paid or to be paid to the solicitor; and

DFI-Sec 5.06(25)(d)6. 6. The amount of compensation the client will pay, if any, in addition to the advisory fees, and whether the cash fee or any other economic benefit paid to the solicitor will be added to the advisory fee, creating a differential with respect to the amount charged to other advisory clients who are not subject to the solicitor compensation arrangement.

DFI-Sec 5.06(25)(e) (e) Nothing in this subsection shall be deemed to relieve any person of any fiduciary or other obligation to which such person may be subject under any law.

DFI-Sec 5.06 History History: Cr. Register, December, 1977, No. 264, eff. 1-1-78; am. (intro.) and (1), renum. (2) to be (8) and am., cr. (2) to (7), Register, December, 1980, No. 300, eff. 1-1-81; am. (9), cr. (10), Register, December, 1986, No. 372, eff. 1-1-87; cr. (11), Register, December, 1989, No. 408, eff. 1-1-90; am. (9), (10), Register, December, 1996, No. 492, eff. 1-1-97; am. (intro.), cr. (12) and (13), Register, December, 1998, No. 516, eff. 1-1-99; am. (6), Register, December, 1999, No. 528, eff. 1-1-00; CR 04-074: am. (12) Register December 2004 No. 588, eff. 1-1-05; CR 08-077: am. (title), (intro.) to (6), (9), (10) and (13), r. and recr. (7), cr. (14) to (23) Register December 2008 No 636, eff. 1-1-09; corrections in (9) and (10) made under s. 13.92 (4) (b) 7., Stats., Register December 2008 No. 636; EmR0829: emerg. cr. (14), eff. 9-18-08; CR 08-095: cr. (24) Register March 2009 No. 639, eff. 4-1-09; CR 10-062: cr. (25) Register September 2010 No. 657, eff. 10-1-10.

DFI-Sec 5.07 DFI-Sec 5.07 Registration and notice filing period.