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Unsolicited Orders

Statute: § 551.202(6), Wis. Stats.

Used for:  Non-issuer transactions through a licensed broker-dealer pursuant to an unsolicited order or offer to purchase.

Filing requirement: Self-Executing. No filing or Consent to Service of Process is necessary in order to claim this exemption.

Administrative Code references: § DFI-Sec 2.02(2), Wis. Adm. Code.

Frequently asked questions:

Q: Is this exemption self-executing?

    A:  Yes.  No filing or Consent to Service of Process is necessary in order to claim this exemption.

Q: Does the broker-dealer have to do anything to perfect this exemption?

    A: The broker-dealer must establish that the trade was unsolicited.

Q:  What must be done by the broker-dealer to establish that the order was unsolicited?

    A: See § DFI-Sec 2.02(2), Wis. Adm. Code.

Q:  Is there any limitation to the number of transactions that may be effectuated under this exemption?

    A: No. There is no limitation on the number of transactions.

History : Predecessor statute 551.23(2), Wis Stats., adopted on January 1, 1970.  Identical to Uniform Securities Act of 1956 section 402(b)(3). Renumbered effective January 1, 2009.


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