551.404 Investment adviser representative registration requirement and exemptions.
551.405 Federal covered investment adviser notice filing requirement.
551.406 Registration by broker-dealer, agent, investment adviser, and investment adviser representative.
551.407 Succession and change in registration of broker-dealer or investment adviser.
551.408 Termination of employment or association of agent and investment adviser representative and transfer of employment or association.
551.409 Withdrawal of registration of broker-dealer, agent, investment adviser, and investment adviser representative.
551.411 Postregistration requirements.
551.412 Denial, revocation, suspension, censure, withdrawal, restriction, condition, or limitation of registration.
SUBCHAPTER V
FRAUD AND LIABILITIES
551.502 Prohibited conduct in providing investment advice.
551.503 Evidentiary burden.
551.504 Filing of sales and advertising literature.
551.505 Misleading filings.
551.506 Misrepresentations concerning registration or exemption.
551.507 Qualified immunity.
551.508 Criminal penalties.
551.511 Rescission offers.
SUBCHAPTER VI
ADMINISTRATION AND JUDICIAL
REVIEW
551.602 Investigations and subpoenas.
551.603 Civil enforcement.
551.604 Administrative enforcement.
551.605 Rules, forms, orders, interpretative opinions, and hearings.
551.606 Administrative files and opinions.
551.607 Public records; confidentiality.
551.608 Uniformity and cooperation with other agencies.
551.611 Service of process.
551.614 Fees and expenses.
551.615 Statutory policy.
SUBCHAPTER VII
TRANSITION
551.703 Application of act to existing proceeding and existing rights and duties.
Ch. 551 Note
NOTE: Chapter 551 was repealed and recreated in its entirety effective 1-1-09 by
2007 Wis. Act 196. A conversion table showing the location of the content, or similar subject matter, of the prior statutes in the new chapter is located at the end of this chapter.
Ch. 551 Cross-reference
Cross-reference: See also
DFI-Sec, Wis. adm. code.
GENERAL PROVISIONS
551.101
551.101
Short title. This chapter shall be known and may be cited as the "Wisconsin Uniform Securities Law."
551.101 History
History: 2007 a. 196.
551.101 Annotation
Regulating Wisconsin-based Businesses: The Wisconsin Uniform Securities Act. Fallone. Wis. Law. Oct. 2009.
551.102
551.102
Definitions. In this chapter, unless the context otherwise requires:
551.102(1m)
(1m) "Administrator" means the administrator of the division of securities in the department of financial institutions.
551.102(2)
(2) "Agent" means an individual, other than a broker-dealer, who represents a broker-dealer in effecting or attempting to effect purchases or sales of securities or represents an issuer in effecting or attempting to effect purchases or sales of the issuer's securities. But a partner, officer, or director of a broker-dealer or issuer, or an individual having a similar status or performing similar functions, is an agent only if the individual otherwise comes within the term. The term does not include an individual excluded by rule adopted or order issued under this chapter.
551.102(3)(a)
(a) A banking institution organized under the laws of the United States.
551.102(3)(c)
(c) Any other banking institution, whether incorporated or not, doing business under the laws of a state or of the United States, a substantial portion of the business of which consists of receiving deposits or exercising fiduciary powers similar to those permitted to be exercised by national banks under the authority of the Comptroller of the Currency pursuant to section 1 of Public Law 87-722 (
12 USC 92a), and which is supervised and examined by a state or federal agency having supervision over banks, and which is not operated for the purpose of evading this chapter.
551.102(3)(d)
(d) A receiver, conservator, or other liquidating agent of any institution or firm included in
par. (a),
(b), or
(c).
551.102(4)
(4) "Broker-dealer" means a person engaged in the business of effecting transactions in securities for the account of others or for the person's own account. The term does not include any of the following:
551.102(4)(c)
(c) A bank or savings institution if its activities as a broker-dealer are limited to those specified in sections 3 (a) (4) and 3 (a) (5) of the Securities Exchange Act of 1934 (
15 USC 78c (a) (4) and (5)), or a bank that satisfies the conditions specified in section 3 (a) (4) (E) of the Securities Exchange Act of 1934 (
15 USC Section 78c (a) (4)).
551.102(4)(e)
(e) A person excluded by rule adopted or order issued under this chapter.
551.102(5)
(5) "Depository institution" means any of the following:
551.102(5)(b)
(b) A savings institution, trust company, credit union, or similar institution that is organized or chartered under the laws of a state or of the United States, authorized to receive deposits, and supervised and examined by an official or agency of a state or the United States if its deposits or share accounts are insured to the maximum amount authorized by statute by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund, or a successor authorized by federal law. The term does not include any of the following:
551.102(5)(b)1.
1. An insurance company or other organization primarily engaged in the business of insurance.
551.102(5m)
(5m) "Division of securities" or "division" means the division of securities in the department of financial institutions.
551.102(6)
(6) "Federal covered investment adviser" means a person registered under the Investment Advisers Act of 1940.
551.102(7)
(7) "Federal covered security" means a security that is, or upon completion of a transaction will be, a covered security under section 18 (b) of the Securities Act of 1933 (
15 USC 77r (b)) or rules or regulations adopted pursuant to that provision.
551.102(8)
(8) "Filing" means the receipt under this chapter of a record by the administrator or a designee of the administrator.
551.102(9)
(9) "Fraud," "deceit," and "defraud" are not limited to common law deceit.
551.102(10)
(10) "Guaranteed" means guaranteed as to payment of all principal and all interest.
551.102(11)
(11) "Institutional investor" means any of the following, whether acting for itself or for others in a fiduciary capacity:
551.102(11)(a)
(a) A depository institution or international banking institution.
551.102(11)(d)
(d) An investment company as defined in the Investment Company Act of 1940.
551.102(11)(e)
(e) A broker-dealer registered under the Securities Exchange Act of 1934.
551.102(11)(f)
(f) An employee pension, profit-sharing, or benefit plan if the plan has total assets in excess of $10,000,000 or its investment decisions are made by a named fiduciary, as defined in the Employee Retirement Income Security Act of 1974, that is a broker-dealer registered under the Securities Exchange Act of 1934, an investment adviser registered or exempt from registration under the Investment Advisers Act of 1940, an investment adviser registered under this chapter, a depository institution, or an insurance company.
551.102(11)(g)
(g) A plan established and maintained by a state, a political subdivision of a state, or an agency or instrumentality of a state or a political subdivision of a state for the benefit of its employees, if the plan has total assets in excess of $10,000,000 or its investment decisions are made by a duly designated public official or by a named fiduciary, as defined in the Employee Retirement Income Security Act of 1974, that is a broker-dealer registered under the Securities Exchange Act of 1934, an investment adviser registered or exempt from registration under the Investment Advisers Act of 1940, an investment adviser registered under this chapter, a depository institution, or an insurance company. For purposes of this paragraph, "political subdivision of a state" does not include a school district.
551.102(11)(h)
(h) A trust, if it has total assets in excess of $10,000,000, its trustee is a depository institution, and its participants are exclusively plans of the types identified in
par. (f) or
(g), regardless of the size of their assets, except a trust that includes as participants self-directed individual retirement accounts or similar self-directed plans.
551.102(11)(i)
(i) An organization described in section
501 (c) (3) of the Internal Revenue Code (
26 USC 501 (c) (3)), corporation, Massachusetts trust or similar business trust, limited liability company, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $10,000,000.
551.102(11)(j)
(j) A small business investment company licensed by the Small Business Administration under section 301 (c) of the Small Business Investment Act of 1958 (
15 USC 681 (c)) with total assets in excess of $10,000,000.
551.102(11)(k)
(k) A private business development company as defined in section 202 (a) (22) of the Investment Advisers Act of 1940 (
15 USC 80b-2 (a) (22)) with total assets in excess of $10,000,000.
551.102(11)(L)
(L) A federal covered investment adviser acting for its own account.
551.102(11)(m)
(m) A qualified institutional buyer, as defined in Rule 144A (a) (1), other than Rule 144A (a) (1) (i) (H), adopted under the Securities Act of 1933 (
17 CFR 230.144A).
551.102(11)(n)
(n) A major U.S. institutional investor, as defined in Rule 15a-6 (b) (4) (i) adopted under the Securities Exchange Act of 1934 (
17 CFR 240.15a-6).
