Wisconsin Administrative Code › Department of Financial Institutions › DFI-Sec 1-36 - Department of Financial Institutions-Securities › Chapter DFI-Sec 5 - Registration and notice filing procedures for investment advisers, federal covered investment advisers, and investment adviser representatives › Section DFI-Sec 5.03 - Investment advisers' records

Current through June 24, 2024
(1) Every
				registered investment adviser whose principal office is in this state shall
				prepare and keep current at that office, or at a designated office located in
				this state, as specified in writing to, and permitted by, the division, or at
				an office under the direct supervision and control of the principal or
				designated office, the following books and records relating to its business:
(a) All partnership agreements, or all
				articles of incorporation, by-laws, minute books and stock certificate books of
				the investment adviser.
(b) A
				general ledger (or other records in the case of a sole proprietor) reflecting
				all asset, liability, income, expense, and capital accounts.
(c) A record showing all payments received,
				including date of receipt, purpose, and from whom received; and all
				disbursements, including date paid, purpose, and to whom made.
(d) A record showing all receivables and
				payables.
(e) All trial balances,
				financial statements, and internal audit working papers which may be prepared
				relating to the business of the investment adviser.
(f) A memorandum of each order given by the
				investment adviser for the purchase or sale of any security, of any instruction
				received by the investment adviser from the client concerning the purchase,
				sale, receipt or delivery of a particular security, and of any modification or
				cancellation of any order or instruction. The memoranda shall show the terms
				and conditions of the order, instruction, modification or cancellation; shall
				identify the person connected with the investment adviser who recommended the
				transaction to the client and the person who placed the order; and shall show
				the account for which entered, the date of entry, and the bank, broker or
				dealer by or through whom executed. Orders entered pursuant to the exercise of
				discretionary power shall be so designated.
(g) Copies of all written communications,
				correspondence, confirmations, appraisals and other records relating to
				investment activities of clients.
(h) A separate file containing a copy of all
				complaints made or submitted by clients relating to investment activities for
				clients, and all investigative inquiries made by law enforcement and securities
				regulatory authorities to the investment adviser or its investment adviser
				representatives regarding their securities and investment advisory business,
				and containing evidence, including representative copies, of the responses made
				by the investment adviser and its investment adviser representatives to the
				complaint or investigation. In this paragraph, "complaint" means any written or
				oral statement of a client or any person acting on behalf of a client alleging
				a grievance involving the activities of persons under the control of the
				investment adviser in connection with providing investment advice or placing
				orders on behalf of clients.
(i) A
				list or other record of all accounts in which the investment adviser is vested
				with any discretionary power with respect to the funds, securities or
				transactions of any client.
(j) A
				copy of all powers of attorney and other evidences of the granting of any
				discretionary authority by any client to the investment adviser or to a third
				party.
(k) A copy of all written
				agreements entered into by the investment adviser with any client, or with any
				other person if the agreement relates to the business of the investment
				adviser.
(L) A file containing any
				advertisement (as defined within the meaning of section 206 (4)-1. of the
				investment advisers act of 1940) used in connection with the offering of the
				investment advisory services in this state.
(m) A record or information demonstrating
				compliance with the net worth requirement in s. DFI-Sec 5.02.
(n) A record that complies with Rule 204-2
				(a) (12) under section 204 of the investment advisers act of 1940 containing
				information for all securities transactions effected for the account of the
				investment adviser or any of its employees subject to that rule, including the
				title and amount of the security involved, the date and nature of the
				transaction, the execution price, and information regarding client transactions
				in the same security.
(o) A record
				of the initial offer and delivery, evidenced by the client's written
				acknowledgement, as well as the annual offer or delivery, or both, to each
				client of the adviser's brochure or other document used to comply with s.
				DFI-Sec 5.05(8).
(p)
1. A copy of each brochure and supplement and
				each amendment or revision to the brochure or supplement, given or sent to any
				client or prospective client of the investment adviser as required by s.
				DFI-Sec 5.05(8);
2. A summary of
				material changes that are required by Part 2 of Form ADV, but are not contained
				in the brochure or supplement; and
3. A record of the dates that each brochure
				and supplement, each amendment or revision thereto, and each summary of
				material changes, was given or offered to any client or to any prospective
				client who subsequently becomes a client.
(q) Copies bearing signatures of the
				investment adviser's appropriate signatory and the investment adviser
				representative, of each initial Form U-4 and each amendment to the disclosure
				reporting pages of Form U-4. These documents shall be retained by the
				investment adviser who prepared the filing on behalf of the investment adviser
				representative.