Section 5.13. Registration exemptions.

 

(1)  For purposes of ss. 551.403 (2) and 551.404 (2) , Stats., an investment adviser or an investment adviser representative is exempt from the registration requirement if its only transactions effected in this state are with:

(a) This state or any of its agencies or political subdivisions or the state investment board.

(b) The federal government or any of its agencies or instrumentalities.

(2)  A solicitor is not required to be registered as an investment adviser or as an investment adviser representative if the solicitor is in compliance with all requirements of s. DFI-Sec 5.06 (25) , and the solicitor satisfies par. (a) or (b) .

(a) Provides solicitation activities that are impersonal in nature as set forth in s. DFI-Sec 5.06 (25) (b) and the solicitor to whom a cash fee or any other economic benefit is paid for such referral does not trigger any of the following as being a person:

1. Subject to an order of the U.S. Securities & Exchange Commission issued under section 203(f) of the Investment Advisers Act of 1940;

2. Subject to an order of the administrator, the securities administrator of any other state, the U.S. Securities and Exchange Commission, or any self regulatory organization denying, suspending, or revoking registration as a broker-dealer, agent, investment adviser, or investment adviser representative or barring the person from the securities or advisory industry or associating or affiliating with the securities or advisory industry, entered after notice and opportunity for hearing;

3. Convicted within the previous ten years of any felony, or any misdemeanor involving conduct described in section 203(e)(2)(A) through (D) of the Investment Advisers Act of 1940;

4. Convicted within the previous ten years of any felony, or any misdemeanor involving conduct described in s. 551.412 (4) (c) , Stats.;

5. Found by the U.S. Securities & Exchange Commission to have engaged, or has been convicted of engaging in, any of the conduct specified in section 203(e)(1), (5) or (6) of the Investment Advisers Act of 1940;

6. Found by the administrator to have engaged, or has been convicted of engaging in, any of the conduct specified in s. 551.412 (4) (a) , (b) or (f) , Stats.;

7. Subject to an order, judgment or decree described in section 203(e)(4) of the Investment Advisers Act of 1940;

8. Subject to an order, judgment or decree described in s. 551.412 (4) (d) , Stats.

(b) Receives an order of the administrator waiving the registration requirement.

(3)  For purposes of s. 551.102 (16) (c) , Stats., "associated with" does not include third party solicitors whose only relationship with a federal covered investment adviser is a contract to solicit or refer clients in return for compensation.

(4)  A supervised person of a federal covered investment adviser notice filed in this state is exempt from the registration requirement in s. 551.404 (1) , Stats., if that supervised person has no place of business in this state.

CR 08-077 : cr. Register December 2008 No. 636 , eff. 1-1-09; CR 09-056 : cr. (4) Register December 2009 No. 648 , eff. 1-1-10; CR 10-062 : r. and recr. (2) Register September 2010 No. 657 , eff. 10-1-10.