|For Immediate Release
|September 22, 2005
DFI Orders Licensing Exemption for Investment Professionals
Displaced by Hurricane Katrina
(Madison) State securities regulators across the country are taking action
to ease the burden of stockbrokers and investment advisers in dealing
with their customers when one or the other is now temporarily relocated
because of Hurricane Katrina. The Department of Financial Institutions
(DFI), Division of Securities, has issued an order waiving the usual licensing
requirement for any such broker-dealer, securities agent, investment adviser,
or investment adviser representative who is staying in Wisconsin
According to DFI's Licensing and Compliance Bureau, the exemption is
available only for pre-existing relationships with customers at the time
of Hurricane Katrina, if the investment firms or individuals remain properly
licensed in the states where they and their customers normally reside.
Customers must be informed that their investment firm or individual is
able to continue to provide services based on the exemption order rather
than being Wisconsin-licensed.
These investment professionals may not solicit new customers in Wisconsin
unless they become licensed under the Wisconsin Uniform Securities Law,
and they are still subject to the anti-fraud provisions of the law.
The order also provides a securities registration exemption for securities
that were qualified for sale in an investor’s home state but may
not be otherwise qualified in Wisconsin.
The exemption will remain available, without the need to make any filings
with the Division of Securities, until December 31, 2005.