(1) the broker-dealer, investment adviser, BD agent or IA rep in question may only transact business in this state if first licensed, or excluded or exempted from state broker-dealer, investment adviser, BD agent or IA rep licensure requirements, as may be; and
(2) follow-up, individualized responses to persons in this state by such broker-dealer, investment adviser, BD agent or IA rep that involve either the effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, as may be, will not be made absent compliance with state broker-dealer, investment adviser, BD agent or IA rep licensing requirements, or an applicable exemption or exclusion from licensure;
B. The Internet Communication contains a mechanism, including and without limitation, technical “firewalls” or other implemented policies and procedures, designed reasonably to ensure that prior to any subsequent, direct communication with prospective customers or clients in this state, the broker-dealer, investment adviser, BD agent or IA rep is first licensed in this state or qualifies for an exemption or exclusion from licensure. Nothing in this paragraph shall be construed to relieve a state-licensed broker-dealer, investment adviser, BD agent or IA rep from any applicable securities licensing requirement in this state;
C. The Internet Communication does not involve either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation in this state over the Internet, but is limited to the dissemination of general information on products and services; and
D. In the case of a BD agent or IA rep:
(1) the affiliation with the broker-dealer or investment adviser of the BD agent or IA rep is prominently disclosed within the Internet Communication;
(2) the broker-dealer or investment adviser with whom the BD agent or IA rep is associated retains responsibility for reviewing and approving the content of any Internet Communication by a BD agent or IA rep;
(3) the broker-dealer or investment adviser with whom the BD agent or IA rep is associated first authorizes the distribution of information on the particular products and services through the Internet Communication; and
(4) in disseminating information through the Internet Communication, the BD agent or IA rep acts within the scope of the authority granted by the broker-dealer or investment adviser;
2. The position expressed in this Order extends to state broker-dealer, investment adviser, BD agent and IA rep licensing requirements only, and does not excuse compliance with applicable securities registration, antifraud or related provisions;
3. Nothing in this Order shall be construed to affect the activities of any broker-dealers, investment adviser, BD agent and IA rep engaged in business in this state that is not subject to the jurisdiction of the Division as a result of the National Securities Markets Improvements Act of 1996, as amended; and
4. This Order shall remain in effect unless and until subsequently amended or rescinded.
Copies of the Order
Copies of the Order are available free of charge by writing to:
Division of Securities
Dept. of Financial Institutions
P.O. Box 1768
Madison, WI 53701
The State of Wisconsin
Department of Administration
Document Sales Unit
P.O. Box 7840
Dated Material. Please Do Not Delay!
