2001 - 2002 LEGISLATURE
March 4, 2002 - Introduced by Representatives Jeskewitz, Plale and Townsend,
cosponsored by Senators Erpenbach and Huelsman. Referred to Committee
on Financial Institutions.
1An Act to create
551.23 (20) and 551.31 (1) (d) and (e) of the statutes; relating
2to: creating an exemption from securities broker-dealer and securities agent
Analysis by the Legislative Reference Bureau
With certain exceptions, current law requires securities broker-dealers and
their agents who transact securities business in this state to be licensed with the
division of securities in the department of financial institutions. This bill exempts
certain Canadian broker-dealers and their agents from this licensing requirement.
The bill specifies conditions that broker-dealers and their agents must satisfy to
qualify for the licensing exemption. For example, in addition to other requirements,
broker-dealers must be located in Canada and have no office or other physical
presence in this state and must effect or attempt to effect only transactions with
specified financial entities or with certain current or former residents of Canada or
persons with certain retirement plans in Canada. To qualify for the licensing
exemption, securities agents, in addition to other requirements, must act on behalf
of broker-dealers that qualify for the licensing exemption.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB875, s. 1
551.23 (20) of the statutes is created to read:
Any offer or sale of a security effected by a broker-dealer that is 3
exempt from licensing under s. 551.31 (1) (d).
AB875, s. 2
551.31 (1) (d) and (e) of the statutes are created to read:
(d) A broker-dealer located in Canada that has no office or other 6
physical presence in this state and that satisfies all of the following conditions:
1. The broker-dealer effects or attempts to effect only transactions in securities 8
with a person specified in s. 551.23 (8) (a) to (f) or with or for any of the following:
a. A person who is in this state temporarily and who, while a resident of Canada 10
and before entering this state, established a bona fide business-client relationship 11
with the broker-dealer.
b. A person who is present in this state, whose transactions are in a 13
self-directed, tax-advantaged retirement plan in Canada of which the person is the 14
holder or contributor.
2. The broker-dealer is registered with or a member of a self-regulatory 16
organization, a stock exchange in Canada, or the bureau des services financiers.
3. The broker-dealer maintains in good standing its provincial or territorial 18
registration in Canada and its registration with or membership in a self-regulatory 19
organization, a stock exchange, or the bureau des services financiers.
4. The broker-dealer discloses to each customer in this state that the 21
broker-dealer and its agents are not licensed under the Wisconsin Uniform 22
(e) An agent who represents a broker-dealer that is exempt from licensing 24
under par. (d), if the agent satisfies all of the following conditions:
1. The transactions effected by the agent for persons in this state are limited 2
to transactions for or with persons described in par. (d) 1.
2. The agent maintains in good standing his or her provincial or territorial 4
registration in Canada.