3. Each investment adviser representative and his or her employing investment adviser or federal covered adviser shall update information contained in an investment adviser representative's application by filing an amendment to Form U-4 with the investment adviser registration depository within 30 days of the date of the event that requires filing of the amendment.
(e) An electronic signature affixed to any filing made in compliance with the requirements of the investment adviser registration depository shall constitute irrefutable evidence of legal signature by any individual whose name is typed on the filing.
Section 3. DFI-Sec 5.01(8) is created to read:
(8) (a) Investment advisers licensed or required to be licensed who experience unanticipated technical difficulties that prevent submission of an electronic filing to the investment adviser registration depository may request a temporary hardship exemption from the requirements to file electronically. An investment adviser whose principal place of business is located in this state may request a temporary hardship exemption by doing all of the following:
1. Filing Form ADV-H in paper format with the division not later than one business day after the due date for the type of filing that is the subject of the Form ADV-H.
2. Submitting the filing that is the subject of the Form ADV-H in electronic format to the investment adviser registration depository not later than seven business days after the due date for the type of filing that is the subject of the Form ADV-H.
(b) The temporary hardship exemption will be deemed effective upon receipt by the division of the completed Form ADV-H within the filing deadline provided in par. (a). Multiple temporary hardship exemption requests by an investment adviser within the same calendar year may be disallowed by the division.
(c) A continuing hardship exemption will be granted only if an investment adviser is able to demonstrate that the electronic filing requirements of this rule are prohibitively burdensome. An investment adviser whose principal place of business is located in this state may request a continuing hardship exemption by filing Form ADV-H in paper format with the division at least twenty business days before the due date for the type of filing that is the subject of the Form ADV-H. The division shall grant or deny the request within ten business days after the filing of Form ADV-H.
(d) The continuing hardship exemption is effective upon approval by the division for a time period not longer than one year after the date on which the Form ADV-H is filed. If the division approves the request, and for the period of time for which the exemption is granted, the investment adviser shall, not later than five business days after the exemption approval date, submit filings in paper format, along with the appropriate processing fees, to the division as prescribed by separate rule or order.
(e) An investment adviser whose principal place of business is located in another state may claim a hardship exemption from the electronic filing requirement in this state if that investment adviser has received a hardship exemption in the state where its principal office is located.
Section 4. DFI-Sec 5.03(1)(p) and (q) are created to read:
(p) 1. A copy of each brochure and supplement and each amendment or revision to the brochure or supplement, given or sent to any client or prospective client of the investment adviser as required by s. DFI-Sec 5.05(8);
2. A summary of material changes that are required by Part 2 of Form ADV, but are not contained in the brochure or supplement; and
3. A record of the dates that each brochure and supplement, each amendment or revision thereto, and each summary of material changes, was given or offered to any client or to any prospective client who subsequently becomes a client.
(q) Copies bearing signatures of the investment adviser's appropriate signatory and the investment adviser representative, of each initial Form U-4 and each amendment to the disclosure reporting pages of Form U-4, must be retained by the investment adviser who prepared the filing on behalf of the investment adviser representative.
Section 5. DFI-Sec 5.05(8) is repealed and recreated to read:
(8) (a) Unless otherwise provided in this rule, each investment adviser shall offer and deliver to each client and prospective client a firm brochure and one or more supplements as required by this subsection. The brochure and any required supplement shall contain all information required by Part 2 of Form ADV and such other information as the division may require.
(b) 1. Each investment adviser shall deliver the current brochure required by this section, and the current brochure supplement for each investment adviser representative who will provide advisory services, to a client or prospective client.
2. For purposes of this subsection, an investment adviser representative is deemed to provide advisory services for a client if the investment adviser representative does any of the following:
a. Regularly communicates investment advice to that client.
b. Formulates investment advice for assets of that client.
c. Makes discretionary investment decisions for assets of that client.
d. Solicits, offers or negotiates for the sale of or sells investment advisory services.
3. The documents required in subd. (b)1. above shall be delivered at the following times:
a. Not less than 48 hours prior to entering into any investment advisory contract with a client or prospective client.
b. At the time of entering into any contract, if the contract specifically provides that the client has a right to terminate the contract without penalty within five business days after entering into the contract.
(c) Each investment adviser shall, at least once a year, without charge, deliver or offer in writing to deliver to each of its clients the current brochure and any current brochure supplements required by par. (a). If a clients accepts the written offer, the investment adviser shall send to that client the current brochure and supplements not later than seven days after the investment adviser is notified of the acceptance.
(d) If the adviser is the general partner of a limited partnership, the manager of a limited liability company, or the trustee of a trust, then for purposes of this subsection, the investment adviser shall treat each of the partnership's limited partners, the company's members, or the trust's beneficial owners as a separate client. For purposes of this subsection, a limited liability partnership or limited liability limited partnership is also considered to be a “limited partnership."
(e) 1. Each investment adviser that is a sponsor of a wrap fee program shall deliver to a client or prospective client in lieu of the brochure required in par. (b), a wrap fee brochure containing all information required by Form ADV. All information in a wrap fee brochure must be limited to information applicable to wrap fee programs that the investment adviser sponsors.
2. An investment adviser is not required to offer or deliver the wrap fee brochure if another sponsor of the wrap fee program offers or delivers to the client or prospective client of the wrap fee program a wrap fee program brochure containing all the information that the investment adviser's wrap fee program brochure must contain.
3. A wrap fee brochure shall not be used in place of any brochure supplement that the investment adviser is required to deliver under par. (b)1.
(f) Each investment adviser shall amend its brochure and any brochure supplement and deliver the amendments to clients not more than 30 days from the date that the information contained in the brochure or brochure supplement becomes materially inaccurate. The investment adviser shall comply with the instructions to Part 2 of Form ADV regarding updating and delivery.
(g) Each investment adviser that renders substantially different types of investment advisory services to different clients may provide them with different brochures, provided that each client receives all applicable information about services and fees. The brochure delivered to a client may omit any information required by Part 2A of Form ADV if such information is applicable to only a type of investment advisory service or fee that is not rendered or charged, or proposed to be rendered or charged, to that client or prospective client.
(h) Nothing in this rule shall relieve any investment adviser from any obligation pursuant to any provision of this chapter or any rules thereunder or other federal or state law to disclose any information to its clients or prospective clients not specifically required by this rule.
(i) Each investment adviser shall deliver to each of its clients its current brochure and all required brochure supplements not later than January 1, 2002.
Section 6. DFI-Sec 5.07 and 5.08 are repealed and recreated to read:
DFI-Sec 5.07 License and notice filing period. (1) Prior to January 1, 2002, the license of an investment adviser expires on April 30. Effective January 1, 2002, the license of an investment adviser expires on December 31 of each year. Each licensed investment adviser seeking renewal of its license shall file for renewal with the investment adviser registration depository according to the depository's schedule.
(2) The license of an investment adviser representative expires on the same day as the license of the investment adviser or the notice filing of the federal covered adviser which the person represents. The license of an investment adviser representative is not effective during any period when the investment adviser which that person represents is not licensed, or when the federal covered adviser that the person represents does not have an effective notice filing with the division, or during any period when the representative is not employed either by a specified investment adviser licensed under ch. 551. Stats., or a federal covered adviser that has filed a notice with the division under s. 551.32(1m)(a), Stats. Each licensed investment adviser representative seeking renewal of his or her license shall file for renewal with the investment adviser registration depository according to the depository's schedule.
DFI-Sec 5.08 Withdrawal of licenses. (1) An application for withdrawal from the status of a licensed investment adviser under s. 551.32(9)(a), Stats., shall be filed with the investment adviser registration depository on Form ADV-W.
(2) An application for withdrawal from the status of a licensed investment adviser representative shall be filed with the investment adviser registration depository on Form U-5 within 15 days of the termination of the representative's employment pursuant to s. 551.31(4)(c), Stats.
Section 7. DFI-Sec 5.10, 5.11 and 5.12 are created to read:
DFI-Sec 5.10 Electronic Filing. The electronic filing of any particular document and the collection of related processing fees shall not be required until such time as the investment adviser registration depository provides for receipt of such filings and fees and the division provides 30 days notice of the change. Any documents or fees required to be filed with the division that are not permitted to be filed with, or cannot be accepted by, the investment adviser registration depository shall be filed directly with the division.
DFI-Sec 5.11 Federal covered adviser notice filing procedure. (1) The notice filing for a federal covered adviser pursuant to s. 551.32(1m), Stats., shall be filed with the investment adviser registration depository on Form ADV. A notice filing for a federal covered adviser shall be deemed filed when the fee on deposit with the investment adviser registration depository has been allocated to the division. Any documents or fees required to be filed with the division that are not permitted to be filed with, or cannot be accepted by, the investment adviser registration depository shall be filed directly with the division.
(2) A federal covered adviser shall file all amendments to its Form ADV with the investment adviser registration depository according to the instructions to Form ADV.
(3) Prior to January 1, 2002, the notice filing of a federal covered adviser that has filed a notice with the division under s. 551.32(1m)(a), Stats., expires on April 30. Each federal covered adviser seeking renewal of its notice filing shall file with the division a notice accompanied by the notice filing fee pro-rated from May 1 to December 31, 2000. Effective January 1, 2002, each federal covered adviser seeking renewal of its notice filing shall file for renewal with the investment adviser registration depository according to the depository's schedule and instructions. An application for renewal of a notice filing under this paragraph shall be deemed “filed" under s. 551.32(1m), Stats., when the fee on deposit with the investment adviser registration depository has been allocated to the division.
DFI-Sec 5.12 Transition filing. (1) Each investment adviser licensed or required to be licensed in this state shall make its initial transition filing electronically with the investment adviser registration depository not later than June 1, 2001, unless a hardship exemption has been granted by the division.
(2) Each investment adviser licensed or required to be licensed in this state shall resubmit its Part 1 of Form ADV electronically with the investment adviser registration depository not later than August 31, 2001, unless a hardship exemption has been granted by the division.
(3) Amendments to an investment adviser's Form ADV that are made after its transition filing is completed pursuant to subs. (1) and (2) must be filed electronically with the investment adviser registration depository, unless a hardship exemption has been granted by the division.
(4) Each investment adviser representative licensed or required to be licensed in this state shall resubmit its Form U-4 electronically with the investment adviser registration depository not later than a date prescribed by separate rule or order of the division, unless a hardship exemption has been granted by the division.
Fiscal Estimate
The proposed rules will not have any annualized state fiscal effects. However, there will be a one-time, approximately $32,000 decrease in Division of Securities licensing revenue. A copy of the full fiscal estimate may be obtained upon request to the Department of Financial Institutions, Division of Securities, 345 West Washington Avenue, 4th Floor, P.O. Box 1768, Madison, WI 53703.
Initial Regulatory Flexibility Analysis
There is no particular small business impact to the proposed permanent rules because the provisions that adopt the IARD for use in Wisconsin benefit equivalently all investment adviser licensees and license applicants as well as federal covered advisers, whether or not they fall within the definition of a small business.
Contact Person
For additional information, or if there are questions concerning the rule proposal, contact Randall E. Schumann, Legal Counsel for the Division, Division of Securities, Department of Financial Institutions, 345 West Washington Avenue, 4th Floor, P.O. Box 1768, Madison, WI 53703. Telephone direct-dial (608) 266-3414.
Notice of Hearings
Health and Family Services
(Health, Chs. HFS 110 - )
Notice is hereby given that, pursuant to ss. 254.47 (4) and 254.68, Stats., the Department of Health and Family Services will hold public hearings to consider the amendment of chs. HFS 172, 175, 178 and 195 to 198, Wisconsin Administrative Code, relating to an increase in permit and related fees for the operation of public swimming pools, recreational and educational camps, campgrounds, hotels and motels, tourist rooming houses, restaurants, bed and breakfast establishments and food and beverage vending operations and commissaries.
Hearing Information
The public hearings will be held:
Monday, March 19, 2001, beginning at 1 p.m.
Public Health Regional Office
1853 N. Stevens Street
Rhinelander, WI 54501
Tuesday, March 20, 2001, beginning at 1 p.m.
Green Bay City Hall Room 604
100 N. Jefferson Street
Green Bay, WI
Wednesday, March 21, 2001, beginning at 1 p.m.
DHFS Regional Office Room 123
610 Gibson Street
Eau Claire, WI
Thursday, March 22, 2001, beginning at 1 p.m.
State Office Building Room B145
1 West Wilson Street
Madison, WI
The hearing sites are fully accessible to people with disabilities.
Analysis Prepared by the Department of Health and Family Services
The department and agent local health departments regulate all campgrounds, camps, the operation of swimming pools that serve the public, restaurants, hotels and motels, tourist rooming houses, bed and breakfast establishments and food vending operations in the state under the authority of ss. 254.47 and 254.61 to 254.88, Stats., to ensure that these facilities comply with the department's health, sanitation and safety standards set out in administrative rules. The department's rules for these facilities are found in chs. HFS 172, 175, 178, 195, 196, 197 and 198 of the Wisconsin Administrative Code. None of the facilities may operate without having a permit issued by the department or an agent local health department. A permit is evidence that a facility complies with the department's rules. Under the department's rules, facilities are charged permit and related fees. Fee revenue supports the department's expenses in providing statutorily required regulatory oversight of these entities.
This rulemaking order amends the department's rules for operation of these facilities to increase permit fees an average of 40% for all program areas, and to increase the preinspection fee for new hotels and motels, tourist rooming houses, restaurants, bed and breakfast establishments and vending machine commissaries.
The fee increases will enable the department to fully staff existing position regulatory program vacancies, allowing the department to increase its frequency of routine inspections, ability to promptly respond to public complaints, and undertake necessary enforcement action.
This order does not affect facilities regulated by local health departments granted agent status under s. 254.69(2), Stats. Permit fees for those facilities are established by local health departments pursuant to s. 254.69 (2)(d), Stats.
Contact Person
To find out more about the hearings or to request a copy of the rulemaking order and the full fiscal estimate, write or phone:
Greg Pallaske
Environmental Sanitation Section
Division of Public Health
P. O. Box 2659
Madison, WI 53701-2659
608-266-8351 or, if you are hearing impaired, 608-266-1511 (TTY)
If you are hearing or visually impaired, do not speak English, or have other personal circumstances which might make communication at a hearing difficult and if you, therefore, require an interpreter, or a non-English, large print or taped version of the hearing document, contact the person at the address or phone number above. A person requesting a non-English or sign language interpreter should make that request at least 10 days before the hearing. With less than 10 days notice, an interpreter may not be available.
