AB150: Bill Text

AB150,2167,12 551.25 (3) (a) 2. The registration statement has been on file with the commissioner department for at least 10 days.

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

AB150,2167,17 551.25 (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 department permits, and the offering is made within these limitations.

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

AB150,2168,19 551.25 (3) (b) The registrant shall promptly notify the commissioner department 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 department 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 department 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 department 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 department of the date when the federal registration statement is expected to become effective, the commissioner department shall promptly advise the registrant by telephone or telegram, at the registrant's expense, whether all the conditions are satisfied and whether the commissioner department then contemplates the institution of a proceeding under s. 551.28; but this advice by the commissioner department does not preclude the institution of such a proceeding at any time.

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

AB150,2169,2 551.26 (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 department by rule or otherwise requires. For this purpose the commissioner department may classify issuers and types of securities.

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

AB150,2169,10 551.26 (3) Registration under this section becomes effective when the commissioner department so orders. If a registration statement has been on file for at least 30 days and all information required by the commissioner department has been furnished, the person filing the statement may at any time file a written request that the commissioner department take action within 10 days following the filing of such request. If a request is filed, and the commissioner department takes no action within the period, the registration becomes effective at the end of the 10-day period.

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

AB150,2169,22 551.26 (4) The commissioner department 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, s. 6666 Section 6666. 551.27 (1) of the statutes is amended to read:

AB150,2170,2 551.27 (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 department may in specific cases require that it be executed by the issuer.

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

AB150,2170,5 551.27 (4) The commissioner department may by rule or otherwise permit the omission of any item of information or document from any registration statement.

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

AB150,2170,13 551.27 (5) The commissioner department 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 department may also designate one of the commissioner's department'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, s. 6669 Section 6669. 551.27 (7) of the statutes is amended to read:

AB150,2170,25 551.27 (7) The commissioner department 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 department may impose both such requirements. The commissioner department may by rule or order determine the conditions of any escrow or impounding required hereunder, but the commissioner department may not reject a depository solely because of location in another state.

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

AB150,2171,4 551.27 (8) The commissioner department may by rule require that securities of designated classes shall be issued under a trust indenture containing such provisions as the commissioner department determines.

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

AB150,2171,9 551.27 (9) The commissioner department 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 department or preserved for any period up to 3 years.

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

AB150,2171,13 551.27 (10) The commissioner department 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, s. 6673 Section 6673. 551.27 (11) of the statutes is amended to read:

AB150,2171,24 551.27 (11) A registration statement is effective for one year from its effective date unless extended by rule or order of the commissioner department. 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 department. No registration statement is effective during the time a stop order is in effect under s. 551.28.

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

AB150,2172,8 551.27 (12) During the effective period of a registration statement, the commissioner department 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 department 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, s. 6675 Section 6675. 551.27 (14) of the statutes is amended to read:

AB150,2172,14 551.27 (14) A registration statement relating to securities issued by any class of financial institutions, which the commissioner department 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 department so orders.

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

AB150,2172,20 551.27 (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 department 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, s. 6677 Section 6677. 551.28 (1) (intro.) of the statutes is amended to read:

AB150,2172,25 551.28 (1) (intro.) The commissioner department may issue a stop order denying effectiveness to, or suspending or revoking the effectiveness of, any registration statement if the commissioner department finds that the order is in the public interest and that:

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

AB150,2173,10 551.28 (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 department 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 department 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, s. 6679 Section 6679. 551.28 (1) (g) of the statutes is amended to read:

AB150,2173,15 551.28 (1) (g) The applicant or registrant has failed to pay the proper filing fee; but the commissioner department may enter only a denial order under this paragraph and the commissioner department shall vacate any such order when the deficiency has been corrected;

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

AB150,2173,21 551.28 (2) The commissioner department may not institute a stop order proceeding against an effective registration statement on the basis of a fact or transaction known to the commissioner department when the registration statement became effective unless the proceeding is instituted within 180 days after the effective date.

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

AB150,2174,2 551.28 (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 department has the burden of establishing the existence of one of the causes enumerated in sub. (1).

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

AB150,2174,8 551.28 (4) If the public interest and the protection of investors so require, the commissioner department may, by order, summarily deny, postpone, suspend or revoke the effectiveness of the registration statement. Upon the entry of the order, the commissioner department shall serve upon all named parties a copy of the order and notify the parties of their right to request a hearing.

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

AB150,2174,12 551.28 (6) The commissioner department may vacate or modify a stop order if the commissioner department finds that the conditions which prompted its entry have changed or that it is otherwise in the public interest to do so.

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

AB150,2174,21 551.28 (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 department shall promulgate rules that establish investor financial suitability standards relating to minimum net worth and to minimum net worth and minimum annual income.

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

AB150,2175,2 551.31 (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 department and the commissioner department, in writing, permits the representation.

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

AB150,2175,5 551.31 (2) (c) The commissioner department shall by rule specify the required contents and form of an application filed under par. (b) 2.

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

AB150,2175,11 551.31 (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 department.

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

AB150,2175,21 551.31 (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 department 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 department 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, s. 6689 Section 6689. 551.31 (5) of the statutes is amended to read:

AB150,2176,2 551.31 (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 department.

AB150, s. 6690 Section 6690. 551.31 (7) (b) of the statutes is amended to read:

AB150,2176,8 551.31 (7) (b) An application to amend the agent's license to name each additional limited partnership or investment company as the agent's employer is filed with and approved by the commissioner department before the agent makes any offers or sales in this state on behalf of the additional limited partnership or investment company.

AB150, s. 6691 Section 6691. 551.32 (1) (a) of the statutes is amended to read:

AB150,2176,13 551.32 (1) (a) A broker-dealer, agent or investment adviser may obtain an initial or renewal license by filing with the commissioner department, or an organization which the commissioner department by rule designates, an application together with a consent to service of process under s. 551.65 (1).

AB150, s. 6692 Section 6692. 551.32 (1) (b) of the statutes is amended to read:

AB150,2176,25 551.32 (1) (b) An application under par. (a) shall contain whatever information the commissioner department by rule requires concerning the applicant's form and place of organization, proposed method of doing business and financial condition, the qualifications and experience of the applicant, including, in the case of a broker-dealer or investment adviser, the qualifications and experience of any partner, officer, director or controlling person, any injunction or administrative order or conviction of a misdemeanor involving securities and any conviction of a felony, and any other matters which the commissioner department determines are relevant to the application. The commissioner department may by rule or order require an applicant for an initial license to publish an announcement of the application in one or more specified newspapers published in this state.

AB150, s. 6693 Section 6693. 551.32 (1) (c) (intro.) of the statutes is amended to read:

AB150,2177,6 551.32 (1) (c) (intro.) Licensing under this subchapter is effective 30 days after an application is filed, other than for an application for license as an agent for an issuer of securities exempted under s. 551.23 (10) or (19) in which case licensing is effective 10 business days after the application is filed or such earlier time as the commissioner department permits, except:

AB150, s. 6694 Section 6694. 551.32 (1) (c) 2. of the statutes is amended to read:

AB150,2177,10 551.32 (1) (c) 2. If the commissioner department makes a written request for additional information relevant to the application within 30 days after the application is filed, the licensing is effective 30 days after the information is filed;

AB150, s. 6695 Section 6695. 551.32 (1) (c) 4. of the statutes is amended to read:

AB150,2177,13 551.32 (1) (c) 4. The commissioner department may by rule or order specify an earlier effective date.

AB150, s. 6696 Section 6696. 551.32 (1) (d) of the statutes is amended to read:

AB150,2177,17 551.32 (1) (d) The commissioner department shall cooperate with other securities administrators and regulatory authorities to simplify and coordinate license application and renewal procedures.

AB150, s. 6697 Section 6697. 551.32 (2) of the statutes is amended to read:

AB150,2177,21 551.32 (2) Before action on an application the commissioner department may designate an employe to make an examination of the books, records and affairs of the applicant at the applicant's expense.

AB150, s. 6698 Section 6698. 551.32 (4) of the statutes is amended to read:

AB150,2178,4 551.32 (4) The commissioner department may by rule prescribe standards of qualification with respect to training, experience and knowledge of the securities business and provide for an examination, which may be written or oral or both, to be taken by any class of or all applicants, as well as persons who represent or will represent an investment adviser, and the commissioner department may by order require an examination of a licensed broker-dealer, agent or investment adviser for due cause.

AB150, s. 6699 Section 6699. 551.32 (5) of the statutes is amended to read:

AB150,2178,8 551.32 (5) The commissioner department may by rule require a minimum capital for broker-dealers and investment advisers and establish limitations on aggregate indebtedness of broker-dealers in relation to net capital.

AB150, s. 6700 Section 6700. 551.32 (6) of the statutes is amended to read:

AB150,2178,14 551.32 (6) The commissioner department may by rule require the furnishing of surety bonds by broker-dealers and investment advisers and all bonds so required shall provide for suit thereon by injured customers or clients, but no bond may be required of any licensee whose net capital exceeds the amount prescribed by rule for this purpose.

AB150, s. 6701 Section 6701. 551.32 (7) of the statutes is amended to read:

AB150,2178,19 551.32 (7) The commissioner department may by rule or order impose other conditions or limitations in connection with the issuance of licenses under this chapter as the commissioner department deems appropriate in the public interest or for the protection of investors.

AB150, s. 6702 Section 6702. 551.33 (1) of the statutes is amended to read:

AB150,2179,3 551.33 (1) Every licensed broker-dealer, agent and investment adviser shall make and keep all accounts, correspondence, memoranda, papers, books and other records which the commissioner department by rule prescribes. All records required shall be preserved for 3 years unless the commissioner department by rule prescribes otherwise for particular types of records. All required records shall be kept within this state or shall, at the request of the commissioner department, be made available at any time for examination by the commissioner department either in the principal office of the licensee or by production of exact copies thereof in this state.

AB150, s. 6703 Section 6703. 551.33 (2) of the statutes is amended to read:

AB150,2179,6 551.33 (2) Every licensed broker-dealer and investment adviser shall file such reports as the commissioner department by rule prescribes.

AB150, s. 6704 Section 6704. 551.33 (3) of the statutes is amended to read:

AB150,2179,11 551.33 (3) If the information contained in any application for license or other document filed with the commissioner department or an organization designated under s. 551.32 (1) (a) is or becomes inaccurate or incomplete in any material respect, the licensee shall promptly file a correcting amendment.