Explanation of agency authority
Pursuant to ch. 551, Stats., the department regulates securities.
Summary of proposed rule
The purpose of the rule is as follows:
Section 1. These amendments are necessary to clarify that these apply to federally-covered advisors, their investment adviser representatives and state advisers, and also to correct cross references.
Section 2. This section can be repealed as duplicative to the definition in s. 551.102(11)(m), Stats.
Section 3. As a result of 2007 Wisconsin Act 196, these exemptions are no longer necessary.
Section 4. These sections can be repealed because of the language and scope of the merger/reorganization and employee benefit plan registration exemptions resulting from 2007 Wisconsin Act 196.
Section 5. These amendments provide for an electronic filing alternative (to the existing hard copy notice filing provision) for federal Regulation D/Rule 506 securities offerings that are or will be made in Wisconsin.
Section 6. This amendment provides specific recognition of electronic prospectus delivery modes that comply with federal requirements on the subject.
Section 7. The amendment to s. DFI-Sec 4.01 (3) clarifies that if an applicant has received a waiver, he or she need not again take and pass such exams. The amendments to s. DFI-Sec 4.01 (4) (e) to (g) clarify that the even though the applicant may receive a waiver, it does not relieve the applicant from passing one of the state law exams.
Section 8. Section DFI-Sec 5.01 (4) (a) embodies two distinct waiver concepts that are best separated, and the amendment eliminates a conflict with (b). Amending s. DFI-Sec 5.01 (4) (b) preserves the minimum qualification standard envisioned by s. DFI-Sec 5.01 (3).
Section 9. Corrects a citation.
Section 10. Is necessary to provide the exemption from registration for investment adviser representatives of noticed filed federal covered investment advisers in order to comply with the provisions of federal law.
Section 11. Because of the change from “licensing" to “registration" for broker-dealer and investment adviser matters, these amendments help differentiate between “licensee" matters and registration of securities matters.
Section 12. Form IAR (WI) is no longer necessary because renewals are handled via IARD, and form IAUSR(WI) will be discontinued as part of the application process.
Comparison with federal regulations
There are no newly-developed or proposed federal regulations addressed by this rule. However, Wisconsin Securities Law and rules are generally coordinated with corresponding federal requirements, pursuant to s. 551.615, Stats.
Comparison with rules in adjacent states
These rule chapters reflect the 2002 Uniform Securities Act which Iowa and Minnesota have adopted and written rules; Illinois and Michigan have not.
Summary of factual data and analytical methodologies
The division applied its own experience in its regulation of securities generally for the minor clarifications, corrections, revisions and examination matters addressed by the rule.
Small Business Impact
The rule makes minor clarifications, corrections and revisions for conformity with existing statutes; imposes no additional substantive requirements; and reduces the same.
Fiscal Estimate
The rule places no additional duties or burdens on state or local government, and hence has no affect on costs to either.
Notice of Hearing
NOTICE IS HEREBY GIVEN that pursuant to the authority granted under s. 601.41 (3), Stats., and the procedures set forth under s. 227.18, Stats., the Office of the Commissioner of Insurance will hold a public hearing to consider the adoption of the proposed rulemaking order affecting Section Ins 17.28 (3h), Wis. Adm. Code, relating to supervision and direction.
Hearing Information
Date:   September 9, 2009
Time:   10:00 a.m., or as soon thereafter as the
  matter may be reached
Place:   OCI, Room 227 (2nd Floor)
  125 South Webster Street
  Madison, WI
Submission of Written Comments
Written comments can be mailed to:
Theresa L. Wedekind
OCI Rule Comment for Rule Ins 1728
Office of the Commissioner of Insurance
PO Box 7873
Madison WI 53707-7873
Written comments can be hand delivered to:
Theresa L. Wedekind
OCI Rule Comment for Rule Ins 1728
Office of the Commissioner of Insurance
125 South Webster St – 2nd Floor
Madison WI 53703-3474
Comments can be emailed to:
Theresa L. Wedekind
Comments submitted through the Wisconsin Adm. Rule Web site at: on the proposed rule will be considered.
The deadline for submitting comments is 4:00 p.m. on the 14th day after the date for the hearing stated in this Notice of Hearing.
Copies of Proposed Rule
A copy of the full text of the proposed rule changes, analysis and fiscal estimate may be obtained from the OCI internet Web site at or by contacting Inger Williams, Public Information and Communications, OCI, at:, (608) 264-8110, 125 South Webster Street – 2nd Floor, Madison WI or PO Box 7873, Madison WI 53707-7873.
Analysis Prepared by the Office of the Commissioner of Insurance
Statutes interpreted
Section 655.005 (2) (a), Stats.
Statutory authority
Sections 601.41 (3) and 655.004, Stats.
Explanation of agency authority
The commissioner of insurance may promulgate such rules under ch. 227 as are necessary to enable the performance of responsibilities under chapter 655 Stats.
Related statutes or rules
Plain language analysis
This rule clarifies what constitutes direction and supervision of a health care provider's employees defined under s. 655.001 (7t), Wis. Stats., as it relates to the health care provider having employee coverage under the fund.
Comparison with federal regulations
To the fund board's and OCI's knowledge there is no existing or proposed federal regulation that is intended to address patient compensation fund administration.
Comparison of rules in adjacent states
To the fund board's and OCI's knowledge there are no similar rules in the adjacent states to compare this rule to as none of these states have a patients compensation fund created by statute.
Summary of factual data and analytical methodologies
The fund's board of governors established a special committee to review issues related to fund coverage. The committee determined that a rule was needed to clarify the meaning of direction and supervision of health care practitioners. The committee recommended to the board the proposed language and the recommendation was approved by the board.
Small Business Impact
This rule does not impose any additional requirements and will have no effect on small businesses.
The OCI small business coordinator is Eileen Mallow and may be reached at phone number (608) 266-7843 or at email address
Fiscal Estimate
Assumptions used in arriving at fiscal estimate
The Injured Patients and Families Compensation Fund (IPFCF or Fund) is a segregated fund that provides excess medical malpractice coverage to Wisconsin health care providers. Chapter 655, Wis. Stats., provides employee coverage to health care providers although specific health care practitioners must practice under the supervision and direction of a physician or CRNA. This rule clarifies supervision and direction and has no fiscal effect.
There is no effect on GPR.
State fiscal effect
Local government fiscal effect
Private sector fiscal effect
Long-range fiscal implications
Agency Contact Person
Inger Williams, OCI Services Section, at:
Links to Admin. Code and Statutes in this Register are to current versions, which may not be the version that was referred to in the original published document.