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 HistoryHistory: 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 5.07DFI-Sec 5.07Registration and notice filing period.
DFI-Sec 5.07(1)(1) The registration of an investment adviser expires on December 31 of each year. Each registered investment adviser seeking renewal of its registration shall file for renewal with the investment adviser registration depository according to the depository’s schedule.
DFI-Sec 5.07(2)(2)
DFI-Sec 5.07(2)(a)(a) The registration of an investment adviser representative expires on the same day as the expiration of the registration of the investment adviser or the notice filing of the federal covered investment adviser which the person represents. The registration of an investment adviser representative is not effective during any period when the investment adviser which that person represents is not registered, or when the federal covered investment adviser that the person represents does not have an effective notice filing with the division, or during any period when the representative is not employed either by a specified investment adviser registered under ch. 551, Stats., or a federal covered investment adviser that has filed a notice with the division under s. 551.405, Stats. Each registered investment adviser representative seeking renewal of his or her registration shall file for renewal with the central registration depository according to the depository’s schedule.
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 HistoryHistory: 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 5.08DFI-Sec 5.08Withdrawal of registration.