AB150, s. 6674
25Section
6674. 551.27 (12) of the statutes is amended to read:
AB150,2172,8
1551.27
(12) During the effective period of a registration statement, the
2commissioner department may by rule or order require the person who filed the
3registration statement to file reports, not more often than quarterly, to keep
4reasonably current the information contained in the registration statement and to
5disclose the progress of the offering. If any of the securities registered have been sold
6in the state, the
commissioner department may by rule or order extend the period for
7filing the reports for an additional period not exceeding 2 years from the date the
8registration became effective or the date of its last amendment or extension.
AB150, s. 6675
9Section
6675. 551.27 (14) of the statutes is amended to read:
AB150,2172,1410
551.27
(14) A registration statement relating to securities issued by any class
11of financial institutions, which the
commissioner
department by rule determines,
12may be amended after its effective date so as to increase the specified amount of
13securities proposed to be offered. The amendment becomes effective when the
14commissioner department so orders.
AB150, s. 6676
15Section
6676. 551.27 (15) of the statutes is amended to read:
AB150,2172,2016
551.27
(15) No warrant or right to purchase or subscribe to another security
17and no security convertible into another security shall be registered unless it appears
18to the
commissioner department that both the warrant or right or convertible
19security and the securities deliverable on the exercise of the warrant or right or
20conversion privilege comply with this chapter.
AB150, s. 6677
21Section
6677. 551.28 (1) (intro.) of the statutes is amended to read:
AB150,2172,2522
551.28
(1) (intro.) The
commissioner
department may issue a stop order
23denying effectiveness to, or suspending or revoking the effectiveness of, any
24registration statement if the
commissioner department finds that the order is in the
25public interest and that:
AB150, s. 6678
1Section
6678. 551.28 (1) (c) of the statutes is amended to read:
AB150,2173,102
551.28
(1) (c) The securities are the subject of an administrative stop order or
3similar order or a permanent or temporary injunction of any court of competent
4jurisdiction entered under any other federal or state act applicable to the offering,
5but the
commissioner department may not institute a proceeding against an effective
6registration statement under this paragraph more than one year from the date of the
7order or injunction relied on, and the
commissioner
department may not enter an
8order under this paragraph on the basis of an order or injunction entered under any
9other state act unless that order or injunction was based on facts which would
10currently constitute a ground for a stop order under this section;
AB150, s. 6679
11Section
6679. 551.28 (1) (g) of the statutes is amended to read:
AB150,2173,1512
551.28
(1) (g) The applicant or registrant has failed to pay the proper filing fee;
13but the
commissioner department may enter only a denial order under this
14paragraph and the
commissioner department shall vacate any such order when the
15deficiency has been corrected;
AB150, s. 6680
16Section
6680. 551.28 (2) of the statutes is amended to read:
AB150,2173,2117
551.28
(2) The
commissioner department may not institute a stop order
18proceeding against an effective registration statement on the basis of a fact or
19transaction known to the
commissioner department when the registration
20statement became effective unless the proceeding is instituted within 180 days after
21the effective date.
AB150, s. 6681
22Section
6681. 551.28 (3) of the statutes is amended to read:
AB150,2174,223
551.28
(3) In a proceeding for registration by qualification, the applicant or
24registrant has the burden of satisfying the requirements of sub. (1). In a proceeding
1for registration by coordination, the
commissioner department has the burden of
2establishing the existence of one of the causes enumerated in sub. (1).
AB150, s. 6682
3Section
6682. 551.28 (4) of the statutes is amended to read:
AB150,2174,84
551.28
(4) If the public interest and the protection of investors so require, the
5commissioner department may, by order, summarily deny, postpone, suspend or
6revoke the effectiveness of the registration statement. Upon the entry of the order,
7the
commissioner department shall serve upon all named parties a copy of the order
8and notify the parties of their right to request a hearing.
AB150, s. 6683
9Section
6683. 551.28 (6) of the statutes is amended to read:
AB150,2174,1210
551.28
(6) The
commissioner department may vacate or modify a stop order if
11the
commissioner department finds that the conditions which prompted its entry
12have changed or that it is otherwise in the public interest to do so.
AB150, s. 6684
13Section
6684. 551.28 (7) of the statutes is amended to read:
AB150,2174,2114
551.28
(7) Subsection (1) (e) and (f) does not apply to the issuance or sale of
15securities to any person who meets investor financial suitability standards if all
16material information in connection with the issuance or sale is disclosed to all
17purchasers. A purchaser shall affirm in writing that the person purchasing
18securities meets the investor financial suitability standards. The
commissioner 19department shall promulgate rules that establish investor financial suitability
20standards relating to minimum net worth and to minimum net worth and minimum
21annual income.
AB150, s. 6685
22Section
6685. 551.31 (2) (b) 2. of the statutes is amended to read:
AB150,2175,223
551.31
(2) (b) 2. More than one broker-dealer or more than one issuer, or both,
24if an application that complies with par. (c) is filed with the
commissioner
1department and the
commissioner department, in writing, permits the
2representation.
AB150, s. 6686
3Section
6686. 551.31 (2) (c) of the statutes is amended to read:
AB150,2175,54
551.31
(2) (c) The
commissioner department shall by rule specify the required
5contents and form of an application filed under par. (b) 2.
AB150, s. 6687
6Section
6687. 551.31 (2) (d) of the statutes is amended to read:
AB150,2175,117
551.31
(2) (d) When an agent terminates employment with a broker-dealer or
8issuer, or terminates those activities which make that individual an agent, or
9transfers employment between licensed broker-dealers, the agent, the
10broker-dealer or the issuer shall promptly file a notice in accordance with rules
11adopted by the
commissioner department.
AB150, s. 6688
12Section
6688. 551.31 (4) of the statutes is amended to read:
AB150,2175,2113
551.31
(4) Every license expires one year from its effective date unless
14renewed, or unless the license is limited or extended for not more than 6 months by
15rule or order for the purpose of administering the licensing statutes in this chapter.
16The
commissioner department by rule or order may prepare an initial schedule for
17license renewals so that subsequent renewals of licenses effective January 1, 1970,
18may be staggered by calendar months. For this purpose the
commissioner 19department may adjust the license fee proportionately. No license is effective after
20its expiration, and expiration of a license for which a renewal application has not
21been filed is deemed an application for withdrawal under s. 551.34 (6).
AB150, s. 6689
22Section
6689. 551.31 (5) of the statutes is amended to read:
AB150,2176,223
551.31
(5) A bank, savings institution or trust company not licensed as a
24broker-dealer may execute orders for the purchase or sale of securities as agent for
1the purchaser or seller thereof in accordance with rules adopted by the
commissioner 2department.
AB150, s. 6690
3Section
6690. 551.31 (7) (b) of the statutes is amended to read:
AB150,2176,84
551.31
(7) (b) An application to amend the agent's license to name each
5additional limited partnership or investment company as the agent's employer is
6filed with and approved by the
commissioner department before the agent makes any
7offers or sales in this state on behalf of the additional limited partnership or
8investment company.
AB150, s. 6691
9Section
6691. 551.32 (1) (a) of the statutes is amended to read:
AB150,2176,1310
551.32
(1) (a) A broker-dealer, agent or investment adviser may obtain an
11initial or renewal license by filing with the
commissioner department, or an
12organization which the
commissioner department by rule designates, an application
13together with a consent to service of process under s. 551.65 (1).
AB150, s. 6692
14Section
6692. 551.32 (1) (b) of the statutes is amended to read:
AB150,2176,2515
551.32
(1) (b) An application under par. (a) shall contain whatever information
16the
commissioner department by rule requires concerning the applicant's form and
17place of organization, proposed method of doing business and financial condition, the
18qualifications and experience of the applicant, including, in the case of a
19broker-dealer or investment adviser, the qualifications and experience of any
20partner, officer, director or controlling person, any injunction or administrative order
21or conviction of a misdemeanor involving securities and any conviction of a felony,
22and any other matters which the
commissioner department determines are relevant
23to the application. The
commissioner department may by rule or order require an
24applicant for an initial license to publish an announcement of the application in one
25or more specified newspapers published in this state.
AB150, s. 6693
1Section
6693. 551.32 (1) (c) (intro.) of the statutes is amended to read:
AB150,2177,62
551.32
(1) (c) (intro.) Licensing under this subchapter is effective 30 days after
3an application is filed, other than for an application for license as an agent for an
4issuer of securities exempted under s. 551.23 (10) or (19) in which case licensing is
5effective 10 business days after the application is filed or such earlier time as the
6commissioner department permits, except:
AB150, s. 6694
7Section
6694. 551.32 (1) (c) 2. of the statutes is amended to read:
AB150,2177,108
551.32
(1) (c) 2. If the
commissioner
department makes a written request for
9additional information relevant to the application within 30 days after the
10application is filed, the licensing is effective 30 days after the information is filed;
AB150, s. 6695
11Section
6695. 551.32 (1) (c) 4. of the statutes is amended to read:
AB150,2177,1312
551.32
(1) (c) 4. The
commissioner
department may by rule or order specify an
13earlier effective date.
AB150, s. 6696
14Section
6696. 551.32 (1) (d) of the statutes is amended to read:
AB150,2177,1715
551.32
(1) (d) The
commissioner department shall cooperate with other
16securities administrators and regulatory authorities to simplify and coordinate
17license application and renewal procedures.
AB150, s. 6697
18Section
6697. 551.32 (2) of the statutes is amended to read:
AB150,2177,2119
551.32
(2) Before action on an application the
commissioner department may
20designate an employe to make an examination of the books, records and affairs of the
21applicant at the applicant's expense.
AB150, s. 6698
22Section
6698. 551.32 (4) of the statutes is amended to read:
AB150,2178,423
551.32
(4) The
commissioner department may by rule prescribe standards of
24qualification with respect to training, experience and knowledge of the securities
25business and provide for an examination, which may be written or oral or both, to be
1taken by any class of or all applicants, as well as persons who represent or will
2represent an investment adviser, and the
commissioner
department may by order
3require an examination of a licensed broker-dealer, agent or investment adviser for
4due cause.
AB150, s. 6699
5Section
6699. 551.32 (5) of the statutes is amended to read:
AB150,2178,86
551.32
(5) The
commissioner department may by rule require a minimum
7capital for broker-dealers and investment advisers and establish limitations on
8aggregate indebtedness of broker-dealers in relation to net capital.
AB150, s. 6700
9Section
6700. 551.32 (6) of the statutes is amended to read:
AB150,2178,1410
551.32
(6) The
commissioner department may by rule require the furnishing
11of surety bonds by broker-dealers and investment advisers and all bonds so required
12shall provide for suit thereon by injured customers or clients, but no bond may be
13required of any licensee whose net capital exceeds the amount prescribed by rule for
14this purpose.
AB150, s. 6701
15Section
6701. 551.32 (7) of the statutes is amended to read:
AB150,2178,1916
551.32
(7) The
commissioner department may by rule or order impose other
17conditions or limitations in connection with the issuance of licenses under this
18chapter as the
commissioner department deems appropriate in the public interest
19or for the protection of investors.
AB150, s. 6702
20Section
6702. 551.33 (1) of the statutes is amended to read:
AB150,2179,321
551.33
(1) Every licensed broker-dealer, agent and investment adviser shall
22make and keep all accounts, correspondence, memoranda, papers, books and other
23records which the
commissioner department by rule prescribes. All records required
24shall be preserved for 3 years unless the
commissioner
department by rule prescribes
25otherwise for particular types of records. All required records shall be kept within
1this state or shall, at the request of the
commissioner department, be made available
2at any time for examination by the
commissioner department either in the principal
3office of the licensee or by production of exact copies thereof in this state.
AB150, s. 6703
4Section
6703. 551.33 (2) of the statutes is amended to read:
AB150,2179,65
551.33
(2) Every licensed broker-dealer and investment adviser shall file such
6reports as the
commissioner department by rule prescribes.
AB150, s. 6704
7Section
6704. 551.33 (3) of the statutes is amended to read:
AB150,2179,118
551.33
(3) If the information contained in any application for license or other
9document filed with the
commissioner department or an organization designated
10under s. 551.32 (1) (a) is or becomes inaccurate or incomplete in any material respect,
11the licensee shall promptly file a correcting amendment.
AB150, s. 6705
12Section
6705. 551.33 (4) of the statutes is amended to read:
AB150,2180,513
551.33
(4) The
commissioner department shall make periodic examinations,
14within or without this state, of the business and records of each licensed
15broker-dealer and investment adviser, at such times and in such scope as the
16commissioner department determines. The examinations may be made without
17prior notice to the broker-dealer or investment adviser. The expense reasonably
18attributable to any such examination shall be paid by the broker-dealer or
19investment adviser whose business is examined, but the expense so payable shall not
20exceed an amount which the
commissioner department by rule prescribes. For the
21purpose of avoiding unnecessary duplication of examinations, the
commissioner 22department, insofar as it is practicable in administering this subsection, may
23cooperate with securities administrators of other states, the securities and exchange
24commission, and any national securities exchange or national securities association
25registered under the securities exchange act of 1934. The
commissioner department
1shall not make public the information obtained in the course of examinations, except
2when the
commissioner's department's duty under this chapter requires the
3commissioner department to take action regarding any broker-dealer or investment
4adviser or to make the information available to one of the organizations specified in
5this subsection, or except when called as a witness in any criminal or civil proceeding.
AB150, s. 6706
6Section
6706. 551.33 (5) of the statutes is amended to read:
AB150,2180,97
551.33
(5) The
commissioner department may by rule prohibit unreasonable
8charges, profits, commissions or other compensation of broker-dealers and
9investment advisers.
AB150, s. 6707
10Section
6707. 551.33 (6) of the statutes is amended to read:
AB150,2180,1311
551.33
(6) The
commissioner department may by rule establish standards for
12the conduct of business by broker-dealers, agents, investment advisers and clearing
13corporations as defined in s. 408.102 (1) (c).
AB150, s. 6708
14Section
6708. 551.34 (1) (intro.) of the statutes is amended to read:
AB150,2180,2115
551.34
(1) (intro.) The
commissioner
department may by order deny an
16application for, or postpone the effective date of, a license or suspend or revoke any
17license or may censure the licensee, if the
commissioner department finds that the
18order is in the public interest and that the applicant or licensee or, in the case of a
19broker-dealer or investment adviser, any partner, officer or director, any person
20occupying a similar status or performing similar functions, or any person directly or
21indirectly controlling the broker-dealer or investment adviser:
AB150, s. 6709
22Section
6709. 551.34 (1) (e) of the statutes is amended to read:
AB150,2180,2523
551.34
(1) (e) Is the subject of an order of the
commissioner department 24denying an application or suspending or revoking a license as a broker-dealer, agent
25or investment adviser;
AB150, s. 6710
1Section
6710. 551.34 (1) (f) of the statutes is amended to read:
AB150,2181,152
551.34
(1) (f) Is the subject of an order entered within the past 5 years by the
3securities administrator of any other state or by the securities and exchange
4commission denying, suspending or revoking the person's registration or license as
5a broker-dealer, agent or investment adviser, or is the subject of an order of the
6securities and exchange commission or of a securities exchange or association
7registered under the securities exchange act of 1934 suspending or expelling such
8person from a securities exchange or association or forbidding the association or
9affiliation of the person with a broker-dealer or investment adviser, or is the subject
10of a U.S. postal service fraud order. The
commissioner department may not institute
11a revocation or suspension proceeding under this paragraph more than one year from
12the date of the order relied on, and the
commissioner
department may not enter an
13order under this paragraph on the basis of an order under another state law or
14federal law unless the order was based on facts which would currently constitute a
15ground for an order under this section;
AB150, s. 6711
16Section
6711. 551.34 (1) (k) of the statutes is amended to read:
AB150,2181,1817
551.34
(1) (k) Has failed to pay the proper filing fee, but the
commissioner 18department shall vacate any such order when the deficiency has been corrected;
AB150, s. 6712
19Section
6712. 551.34 (1) (m) of the statutes is amended to read:
AB150,2181,2320
551.34
(1) (m) Has made any material misrepresentation to or withheld or
21concealed any material fact from the
commissioner or any of his or her
22representatives department, or has refused to furnish information reasonably
23requested by the
commissioner department; or
AB150, s. 6713
24Section
6713. 551.34 (2) of the statutes is amended to read:
AB150,2182,5
1551.34
(2) The enumeration of the causes stated in sub. (1) shall not be
2exclusive and the
commissioner department may deny an application or suspend or
3revoke any license or censure any licensee for any cause whether similar to or
4different from these causes when necessary or appropriate in the public interest or
5for the protection of investors.
AB150, s. 6714
6Section
6714. 551.34 (3) of the statutes is amended to read:
AB150,2182,107
551.34
(3) The
commissioner department may not institute a suspension or
8revocation proceeding on the basis of a fact or transaction known to the
commissioner 9department when the license was issued unless the proceeding is instituted within
10180 days following issuance of the license.
AB150, s. 6715
11Section
6715. 551.34 (4) of the statutes is amended to read:
AB150,2182,1612
551.34
(4) If the public interest or the protection of investors so requires, the
13commissioner department may by order summarily deny or suspend a license or
14postpone the effective date of a license. Upon the entry of the order, the
commissioner 15department shall serve upon all named parties a copy of the order and notify the
16parties of their right to request a hearing.
AB150, s. 6716
17Section
6716. 551.34 (5) of the statutes is amended to read:
AB150,2182,2318
551.34
(5) If the
commissioner department finds that any licensee or applicant
19is no longer in existence or has ceased to do business as a broker-dealer, agent or
20investment adviser, or is subject to an adjudication of mental incompetence or to the
21control of a committee, conservator or guardian, or cannot be located after reasonable
22search, the
commissioner department may on order issued summarily revoke the
23license or deny the application.
AB150, s. 6717
24Section
6717. 551.34 (6) of the statutes is amended to read:
AB150,2183,15
1551.34
(6) Withdrawal from the status of a licensed broker-dealer, agent or
2investment adviser becomes effective 30 days after receipt by the
commissioner 3department or by an organization designated by rule of the
commissioner 4department under s. 551.32 (1) (a) of an application to withdraw or within such
5shorter period as the
commissioner department determines, unless a revocation or
6suspension proceeding is pending when the application is filed or a proceeding to
7revoke or suspend or to impose conditions upon the withdrawal is instituted within
830 days after the application is filed. If a proceeding is pending or instituted,
9withdrawal becomes effective at such time and upon such conditions as the
10commissioner department by order determines. If no proceeding is pending or
11instituted and withdrawal automatically becomes effective, the
commissioner 12department may institute a revocation or suspension proceeding for the grounds
13specified under sub. (1) (b), (g), (m) or (n) within one year after withdrawal became
14effective and enter a revocation or suspension order as of the last date on which the
15license was in effect.
AB150, s. 6718
16Section
6718. 551.43 of the statutes is amended to read: