Amendment ASA-AB150

AB150-ASA,2020,5 551.23 (19) (c) 2. a. Any disqualification under this paragraph involving a broker-dealer or agent is waived if the broker-dealer or agent is or continues to be licensed in this state as a broker-dealer or agent after notifying the commissioner division of the act or event causing disqualification.

AB150-ASA, s. 6646 Section 6646. 551.23 (19) (c) 2. b. of the statutes is amended to read:

AB150-ASA,2020,9 551.23 (19) (c) 2. b. The commissioner division may waive any disqualification under this paragraph upon a showing of good cause that it is not necessary under the circumstances that use of the exemption be denied.

AB150-ASA, s. 6647 Section 6647. 551.23 (19) (d) of the statutes is amended to read:

AB150-ASA,2020,18 551.23 (19) (d) Not later than the earlier of the date on which the first use of an offering document or the first sale is made in this state in reliance on the exemption under par. (a), there is filed with the commissioner division a notice comprised of offering material in compliance with the requirements of Rule 502 of Regulation D under the securities act of 1933, a completed Form D as prescribed by Rule 503 of Regulation D under the securities act of 1933, and a fee of $200. Material amendments to the offering document shall be filed with the commissioner division not later than the date of their first use in this state.

AB150-ASA, s. 6648 Section 6648. 551.23 (19) (f) of the statutes is amended to read:

AB150-ASA,2021,2 551.23 (19) (f) The commissioner division may, by order, increase the number of purchasers or waive any other conditions of the exemption under par. (a) for a particular offering. The commissioner division shall not require the filing of advertising used in connection with offers or sales in reliance on the exemption. The exemption may be revoked by order of the commissioner division, but only if the offering constitutes or would constitute a violation of s. 551.31 and notice thereof has been received by the issuer, or constitutes or would constitute a violation of s. 551.41.

AB150-ASA, s. 6649 Section 6649. 551.235 (intro.) of the statutes is amended to read:

AB150-ASA,2021,7 551.235 Seasoned issuer exempt transactions. (intro.) A registration exemption is available for any offer or sale of securities that meets all of the following conditions or that meets all of the following conditions other than any condition or conditions waived by the commissioner division upon a showing of good cause:

AB150-ASA, s. 6650 Section 6650. 551.235 (6) (a) (intro.) of the statutes is amended to read:

AB150-ASA,2021,10 551.235 (6) (a) Filing requirements. (intro.) The issuer or applicant files all of the following with the commissioner division:

AB150-ASA, s. 6651 Section 6651. 551.235 (6) (a) 5. of the statutes is amended to read:

AB150-ASA,2021,17 551.235 (6) (a) 5. An undertaking, signed by a person authorized by the issuer or applicant, to file promptly with the commissioner division all pre-effective amendments to the federal registration statement for the securities, to notify promptly the commissioner division by telephone or wire of the date and time when the federal registration statement becomes effective and to file promptly with the commissioner division 2 copies of the final prospectus.

AB150-ASA, s. 6652 Section 6652. 551.235 (6) (b) of the statutes is amended to read:

AB150-ASA,2021,22 551.235 (6) (b) Time for filing. The documents and fee prescribed in par. (a) are filed with the commissioner division not later than the earlier of the date of the first use of the preliminary or final offering document in this state or the first sale in this state.

AB150-ASA, s. 6653 Section 6653. 551.24 (1) of the statutes is amended to read:

AB150-ASA,2022,3 551.24 (1) The commissioner division may by order deny or revoke any exemption under s. 551.22, 551.23 or 551.235 with respect to a specified security or transaction.

AB150-ASA, s. 6654 Section 6654. 551.24 (2) of the statutes is amended to read:

AB150-ASA,2022,9 551.24 (2) If the public interest and the protection of investors so require, the commissioner division may by order summarily deny or revoke any exemption under s. 551.22, 551.23 or 551.235 with respect to a specified security or transaction. Upon entry of the order, the commissioner division shall serve upon all named parties a copy of the order and notify the parties of their right to request a hearing.

AB150-ASA, s. 6655 Section 6655. 551.24 (4) (intro.) of the statutes is amended to read:

AB150-ASA,2022,13 551.24 (4) (intro.) A person who offers or sells a security pursuant to an exemption under s. 551.22, 551.23 or 551.235 after the exemption is denied or revoked by an order of the commissioner division does not violate s. 551.21 (1) if:

AB150-ASA, s. 6656 Section 6656. 551.24 (6) of the statutes is amended to read:

AB150-ASA,2022,22 551.24 (6) With respect to an exemption under s. 551.22 or 551.23 that is perfected if a notice or other information is filed with the commissioner division and the commissioner division does not disallow the exemption within a specified period after the filing, the commissioner division may, within 10 days after the filing date of the notice or other information, require that additional information reasonably related to the offering be filed. If the commissioner division requires additional information, the date by which the commissioner division may disallow the exemption is 10 days after the date of filing that information.

AB150-ASA, s. 6657 Section 6657. 551.25 (2) (b) of the statutes is amended to read:

AB150-ASA,2023,3 551.25 (2) (b) If the commissioner division by rule or otherwise requires, a copy of the articles of incorporation and bylaws or their substantial equivalents currently in effect, a copy of any agreements with or among underwriters, a copy of any indenture or other instrument governing the issuance of the security to be registered, and a specimen or copy of the security;

AB150-ASA, s. 6658 Section 6658. 551.25 (2) (c) of the statutes is amended to read:

AB150-ASA,2023,6 551.25 (2) (c) If the commissioner division requires, any other information, or copies of any documents, filed under the securities act of 1933; and

AB150-ASA, s. 6659 Section 6659. 551.25 (2) (d) of the statutes is amended to read:

AB150-ASA,2023,12 551.25 (2) (d) An undertaking to forward all future amendments to the federal prospectus, other than an amendment which merely delays the effective date of the registration statement, not later than the first business day after they are forwarded to or filed with the securities and exchange commission, or such longer period as the commissioner division permits.

AB150-ASA, s. 6660 Section 6660. 551.25 (3) (a) 2. of the statutes is amended to read:

AB150-ASA,2023,15 551.25 (3) (a) 2. The registration statement has been on file with the commissioner division for at least 10 days.

AB150-ASA, s. 6661 Section 6661. 551.25 (3) (a) 3. of the statutes is amended to read:

AB150-ASA,2023,20 551.25 (3) (a) 3. A statement of the maximum and minimum proposed offering prices and the maximum underwriting discounts and commissions has been on file for 2 full business days or such shorter period as the commissioner division permits, and the offering is made within these limitations.

AB150-ASA, s. 6662 Section 6662. 551.25 (3) (b) of the statutes is amended to read:

AB150-ASA,2024,22 551.25 (3) (b) The registrant shall promptly notify the commissioner division by telephone or telegram of the date and time when the federal registration statement became effective and the content of the price amendment, if any, and shall promptly file a post-effective amendment containing the information and documents in the price amendment. "Price amendment" means the final federal amendment which includes a statement of the offering price, underwriting and selling discounts or commissions, amount of proceeds, conversion rates, call prices and other matters dependent upon the offering price. Upon failure to receive the required notification and post-effective amendment with respect to the price amendment, the commissioner division may enter a stop order, without notice or hearing, retroactively denying effectiveness to the registration statement or suspending its effectiveness until compliance with this subsection is effected, if the commissioner division promptly notifies the registrant by telephone or telegram of the issuance of the order. If the registrant proves compliance with the requirements of this subsection as to notice and post-effective amendment, the stop order shall be vacated. The commissioner division may by rule or otherwise waive any of the conditions specified in par. (a). If the federal registration statement becomes effective before all the conditions in this subsection are satisfied and they are not waived, the registration statement automatically becomes effective as soon as all the conditions are satisfied. If the registrant advises the commissioner division of the date when the federal registration statement is expected to become effective, the commissioner division shall promptly advise the registrant by telephone or telegram, at the registrant's expense, whether all the conditions are satisfied and whether the commissioner division then contemplates the institution of a proceeding under s. 551.28; but this advice by the commissioner division does not preclude the institution of such a proceeding at any time.

AB150-ASA, s. 6663 Section 6663. 551.26 (2) of the statutes is amended to read:

AB150-ASA,2025,4 551.26 (2) A registration statement under this section shall contain the information specified in s. 551.27 (2), shall be accompanied by the consent to service of process required by s. 551.65 (1), and shall contain such further information and be accompanied by such further documents as the commissioner division by rule or otherwise requires. For this purpose the commissioner division may classify issuers and types of securities.

AB150-ASA, s. 6664 Section 6664. 551.26 (3) of the statutes is amended to read:

AB150-ASA,2025,12 551.26 (3) Registration under this section becomes effective when the commissioner division so orders. If a registration statement has been on file for at least 30 days and all information required by the commissioner division has been furnished, the person filing the statement may at any time file a written request that the commissioner division take action within 10 days following the filing of such request. If a request is filed, and the commissioner division takes no action within the period, the registration becomes effective at the end of the 10-day period.

AB150-ASA, s. 6665 Section 6665. 551.26 (4) of the statutes is amended to read:

AB150-ASA,2025,24 551.26 (4) The commissioner division may by rule or order require as a condition of registration under this section that a prospectus containing any designated part of the information contained in the registration statement or filed with it be sent or given to each person to whom an offer is made before or concurrently with the first written offer made to the person, otherwise than by means of a public advertisement, by or for the account of the issuer or any other person on whose behalf the offering is made, or by any underwriter or broker-dealer who is offering part of an unsold allotment or subscription taken by him or her as a participant in the distribution; or the confirmation of any sale made by or for the account of any person; or the payment pursuant to any sale; or the delivery of the security pursuant to any sale; whichever first occurs.

AB150-ASA, s. 6666 Section 6666. 551.27 (1) of the statutes is amended to read:

AB150-ASA,2026,3 551.27 (1) A registration statement may be filed by the issuer, any other person on whose behalf the offering is to be made or a licensed broker-dealer, but the commissioner division may in specific cases require that it be executed by the issuer.

AB150-ASA, s. 6667 Section 6667. 551.27 (4) of the statutes is amended to read:

AB150-ASA,2026,6 551.27 (4) The commissioner division may by rule or otherwise permit the omission of any item of information or document from any registration statement.

AB150-ASA, s. 6668 Section 6668. 551.27 (5) of the statutes is amended to read:

AB150-ASA,2026,14 551.27 (5) The commissioner division may by rule or order require as a condition of registration, and at the expense of the applicant or registrant, that a report by an accountant, engineer, appraiser or other professional person be filed. The commissioner division may also designate one of the commissioner's division's employes to make an examination of the business and records of an issuer of securities for which a registration statement has been filed by qualification or coordination, at the expense of the applicant or registrant.

AB150-ASA, s. 6669 Section 6669. 551.27 (7) of the statutes is amended to read:

AB150-ASA,2026,25 551.27 (7) The commissioner division may by rule or order require as a condition of registration that any security issued within the past 3 years or to be issued to a promoter for a consideration substantially different from the public offering price, or to any person for a consideration other than cash, be deposited in escrow; or that the proceeds from the sale of the registered security in this state be impounded until the issuer receives a specified amount from the sale of the security either in this state or elsewhere; or the commissioner division may impose both such requirements. The commissioner division may by rule or order determine the conditions of any escrow or impounding required hereunder, but the commissioner division may not reject a depository solely because of location in another state.

AB150-ASA, s. 6670 Section 6670. 551.27 (8) of the statutes is amended to read:

AB150-ASA,2027,4 551.27 (8) The commissioner division may by rule require that securities of designated classes shall be issued under a trust indenture containing such provisions as the commissioner division determines.

AB150-ASA, s. 6671 Section 6671. 551.27 (9) of the statutes is amended to read:

AB150-ASA,2027,9 551.27 (9) The commissioner division may by rule or order require as a condition of registration that any security registered be sold only on a specified form of subscription or sale contract, and that a signed or conformed copy of each contract be filed with the commissioner division or preserved for any period up to 3 years.

AB150-ASA, s. 6672 Section 6672. 551.27 (10) of the statutes is amended to read:

AB150-ASA,2027,13 551.27 (10) The commissioner division may by rule or order impose other conditions under which a security registered by qualification or coordination may be sold, if these conditions are reasonable and in the public interest.

AB150-ASA, s. 6673 Section 6673. 551.27 (11) of the statutes is amended to read:

AB150-ASA,2027,24 551.27 (11) A registration statement is effective for one year from its effective date unless extended by rule or order of the commissioner division. All outstanding securities of the same class as a registered security are considered to be registered for the purpose of any transaction by or on behalf of a person not the issuer and not in control of the issuer or controlled by the issuer or under common control with the issuer, so long as the registration statement is effective, unless otherwise prescribed by order. A registration statement may not be withdrawn after its effective date if any of the securities registered have been sold in this state, unless permitted by rule or order of the commissioner division. No registration statement is effective during the time a stop order is in effect under s. 551.28.

AB150-ASA, s. 6674 Section 6674. 551.27 (12) of the statutes is amended to read:

AB150-ASA,2028,8 551.27 (12) During the effective period of a registration statement, the commissioner division may by rule or order require the person who filed the registration statement to file reports, not more often than quarterly, to keep reasonably current the information contained in the registration statement and to disclose the progress of the offering. If any of the securities registered have been sold in the state, the commissioner division may by rule or order extend the period for filing the reports for an additional period not exceeding 2 years from the date the registration became effective or the date of its last amendment or extension.

AB150-ASA, s. 6675 Section 6675. 551.27 (14) of the statutes is amended to read:

AB150-ASA,2028,14 551.27 (14) A registration statement relating to securities issued by any class of financial institutions, which the commissioner division by rule determines, may be amended after its effective date so as to increase the specified amount of securities proposed to be offered. The amendment becomes effective when the commissioner division so orders.

AB150-ASA, s. 6676 Section 6676. 551.27 (15) of the statutes is amended to read:

AB150-ASA,2028,20 551.27 (15) No warrant or right to purchase or subscribe to another security and no security convertible into another security shall be registered unless it appears to the commissioner division that both the warrant or right or convertible security and the securities deliverable on the exercise of the warrant or right or conversion privilege comply with this chapter.

AB150-ASA, s. 6677 Section 6677. 551.28 (1) (intro.) of the statutes is amended to read:

AB150-ASA,2028,25 551.28 (1) (intro.) The commissioner division may issue a stop order denying effectiveness to, or suspending or revoking the effectiveness of, any registration statement if the commissioner division finds that the order is in the public interest and that:

AB150-ASA, s. 6678 Section 6678. 551.28 (1) (c) of the statutes is amended to read:

AB150-ASA,2029,10 551.28 (1) (c) The securities are the subject of an administrative stop order or similar order or a permanent or temporary injunction of any court of competent jurisdiction entered under any other federal or state act applicable to the offering, but the commissioner division may not institute a proceeding against an effective registration statement under this paragraph more than one year from the date of the order or injunction relied on, and the commissioner division may not enter an order under this paragraph on the basis of an order or injunction entered under any other state act unless that order or injunction was based on facts which would currently constitute a ground for a stop order under this section;

AB150-ASA, s. 6679 Section 6679. 551.28 (1) (g) of the statutes is amended to read:

AB150-ASA,2029,15 551.28 (1) (g) The applicant or registrant has failed to pay the proper filing fee; but the commissioner division may enter only a denial order under this paragraph and the commissioner division shall vacate any such order when the deficiency has been corrected;

AB150-ASA, s. 6680 Section 6680. 551.28 (2) of the statutes is amended to read:

AB150-ASA,2029,20 551.28 (2) The commissioner division may not institute a stop order proceeding against an effective registration statement on the basis of a fact or transaction known to the commissioner division when the registration statement became effective unless the proceeding is instituted within 180 days after the effective date.

AB150-ASA, s. 6681 Section 6681. 551.28 (3) of the statutes is amended to read:

AB150-ASA,2029,25 551.28 (3) In a proceeding for registration by qualification, the applicant or registrant has the burden of satisfying the requirements of sub. (1). In a proceeding for registration by coordination, the commissioner division has the burden of establishing the existence of one of the causes enumerated in sub. (1).

AB150-ASA, s. 6682 Section 6682. 551.28 (4) of the statutes is amended to read:

AB150-ASA,2030,6 551.28 (4) If the public interest and the protection of investors so require, the commissioner division may, by order, summarily deny, postpone, suspend or revoke the effectiveness of the registration statement. Upon the entry of the order, the commissioner division shall serve upon all named parties a copy of the order and notify the parties of their right to request a hearing.

AB150-ASA, s. 6683 Section 6683. 551.28 (6) of the statutes is amended to read:

AB150-ASA,2030,10 551.28 (6) The commissioner division may vacate or modify a stop order if the commissioner division finds that the conditions which prompted its entry have changed or that it is otherwise in the public interest to do so.

AB150-ASA, s. 6684 Section 6684. 551.28 (7) of the statutes is amended to read:

AB150-ASA,2030,19 551.28 (7) Subsection (1) (e) and (f) does not apply to the issuance or sale of securities to any person who meets investor financial suitability standards if all material information in connection with the issuance or sale is disclosed to all purchasers. A purchaser shall affirm in writing that the person purchasing securities meets the investor financial suitability standards. The commissioner division shall promulgate rules that establish investor financial suitability standards relating to minimum net worth and to minimum net worth and minimum annual income.

AB150-ASA, s. 6685 Section 6685. 551.31 (2) (b) 2. of the statutes is amended to read:

AB150-ASA,2030,23 551.31 (2) (b) 2. More than one broker-dealer or more than one issuer, or both, if an application that complies with par. (c) is filed with the commissioner division and the commissioner division, in writing, permits the representation.

AB150-ASA, s. 6686 Section 6686. 551.31 (2) (c) of the statutes is amended to read:

AB150-ASA,2031,2 551.31 (2) (c) The commissioner division shall by rule specify the required contents and form of an application filed under par. (b) 2.

AB150-ASA, s. 6687 Section 6687. 551.31 (2) (d) of the statutes is amended to read:

AB150-ASA,2031,8 551.31 (2) (d) When an agent terminates employment with a broker-dealer or issuer, or terminates those activities which make that individual an agent, or transfers employment between licensed broker-dealers, the agent, the broker-dealer or the issuer shall promptly file a notice in accordance with rules adopted by the commissioner division.

AB150-ASA, s. 6688 Section 6688. 551.31 (4) of the statutes is amended to read:

AB150-ASA,2031,18 551.31 (4) Every license expires one year from its effective date unless renewed, or unless the license is limited or extended for not more than 6 months by rule or order for the purpose of administering the licensing statutes in this chapter. The commissioner division by rule or order may prepare an initial schedule for license renewals so that subsequent renewals of licenses effective January 1, 1970, may be staggered by calendar months. For this purpose the commissioner division may adjust the license fee proportionately. No license is effective after its expiration, and expiration of a license for which a renewal application has not been filed is deemed an application for withdrawal under s. 551.34 (6).

AB150-ASA, s. 6689 Section 6689. 551.31 (5) of the statutes is amended to read:

AB150-ASA,2031,23 551.31 (5) A bank, savings institution or trust company not licensed as a broker-dealer may execute orders for the purchase or sale of securities as agent for the purchaser or seller thereof in accordance with rules adopted by the commissioner division.