Washington State Department of Financial Institutions

Division of Securities Rulemaking Docket

Rulemaking is the process government agencies must use to create, modify, or repeal rules in the Washington Administrative Code (WAC).Below you will find information about current Division of Securities rulemaking activity.

Petition for Adoption, Amendment, or Repeal of a State Rule
Individuals or groups who wish to petition DFI to adopt, amend, or repeal an administrative rule may do so by using the form linked below. You also may contact DFI using other formats, such as a letter or email.


Crowdfunding

The Securities Division is soliciting comments on rules for crowdfunding for small business capital as required under ESHB 2023 (the "Washington Jobs Act of 2014").

Documents

Submit Your Comments

If you have any questions or comments, please contact Faith Anderson at (360) 725-7825 or by email at faith.anderson@dfi.wa.gov.

Comments on Draft Rules

Comments Received


Salespersons for Issuers – Termination of Registration

The Washington Securities Division has proposed a new rule at WAC 460‑23B-070 regarding the termination of salespersons for issuers. The proposed rule specifies that if the employment or association of a salesperson for an issuer is terminated, the salesperson and the issuer must notify the Securities Division of the termination by filing Form U5 with the Division.

Please find a copy of the Notice of Proposed Rulemaking (Form CR-102) and the text of the proposed rule below in the documents section.

Public Rulemaking Hearing

October 1, 2014 - 10 am
Department of Financial Institutions
150 Israel Road SW
Tumwater, WA 98501

Documents

Questions/Comments

If you have any questions or comments, please contact Jill Vallely at (360) 902-8801 or by email at jill.vallely@dfi.wa.gov.


Repeal of Securities Act Policy Statement No. 4

The Securities Division has repealed Securities Act Policy Statement No. 4. Please refer to the Interested Persons Correspondence and Notice of Repeal for more information.

Documents


Electronic Delivery of Franchise Disclosure Documents

The Securities Division is considering proposing to amend its rules to explicitly allow the electronic delivery of franchise disclosure documents.

Documents

Questions

If you have any questions or comments, please contact Michelle Webster at (360) 902-9736 or by email at michelle.webster@dfi.wa.gov.


Investment Adviser Rules Amended

The Securities Division has amended the investment adviser rules in Chapter 460-24A WAC. The amendments update various provisions of the investment adviser rules, including the rules regarding financial reporting requirements, custody, books and records, and unethical practices. There are new rules addressing proxy voting, advisory contracts, and compliance policies and procedures. In addition, there are new exemptions from registration for 3(c)(7) fund advisers and venture capital fund advisers.

If you have any questions concerning this rulemaking, please contact Jill Vallely at (360) 902-8801 or jill.vallely@dfi.wa.gov.

Documents

Submit Your Comments

If you have any questions or comments, please contact Jill Vallely at (360) 902-8801 or by email at jill.vallely@dfi.wa.gov.


Updating Reference to Securities Manuals Contained in WAC 460-10A-160 Amended

The Securities Division is proposing to update a reference in WAC 460-10A-160 to securities manuals that are no longer in existence. We are proposing to remove the outdated reference and replace it with a reference to the current manuals.

Documents


Expanding Definition of Precious Metal to Include Palladium and Copper Amended

The Securities Division has adopted a rule to expand the definition of "precious metal" under the Commodities Act of Washington, RCW 21.30.010(17) to include palladium and copper.

Documents

Questions

Questions concerning this rulemaking may be directed to Jordan Rood at Jordan.Rood@dfi.wa.gov or (360) 902-8797.


Name Change from NASD to FINRA Adopted

The Securities Division updated Title 460 WAC to reflect the name change from “National Association of Securities Dealers” and “NASD” to “Financial Industry Regulatory" and "FINRA." The update will prevent confusion by eliminating outdated references to NASD and National Association of Securities Dealers. This rulemaking will only update the above changes of name, and will have no substantive effect on the administration of the rules.

Documents

Updated WACS

Questions

Questions concerning this rulemaking may be directed to Jordan Rood at Jordan.Rood@dfi.wa.gov or (360) 902-8797.


Amending WAC 460-44A to Make Ministerial Updates to Account for Amendments to Federal Regulation D Amended

The Securities Division has amended WAC 460-44A to make ministerial updates to account for amendments to federal Regulation D.

Documents

Questions

If you have any questions or comments, please contact Dan Matthews at (360) 902-8785 or by email at dan.matthews@dfi.wa.gov.


Expedited Rulemaking: To Conform "Accredited Investor" Standards to Federal Law Amended

On July 21, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”) was signed into law. As mandated by the Act, the Securities and Exchange Commission (“SEC”) amended its net worth standards used to determine whether an individual is an accredited investor. Accredited investor status is used to determine the availability of certain exemptions to securities registration under the Securities Act of 1933. The amendments, as adopted by the SEC, exclude the value of a person’s primary residence and clarify the treatment of any indebtedness secured by the residence in calculating net worth. See Securities and Exchange Commission Release No. 33-9287, available at: http://www.sec.gov/rules/final/2011/33-9287.pdf.

The Securities Division has adopted corresponding amendments to its definition of “accredited investor” to conform to current federal standards. In particular, the rules affected are WAC 460-44A-501 and WAC 460-80-108. A copy of the Rule-making Order (CR-103P) and marked copies of the affected rules are attached.

Questions may be directed to Michelle Webster at michelle.webster@dfi.wa.gov or (360) 902-8736.

Documents


Rulemaking: Mortgage Paper Securities Rules Amended

The Division of Securities has amended the rules set forth in chapter 460-33A WAC, which provide an optional method of registration for “mortgage paper securities” as defined in WAC 460-33A-015(4).

The amended rules strengthen investor suitability requirements; revise the calculation of the number of investors that may participate in a loan; establish requirements for participation agreements; revise net worth and bonding requirements; revise provisions regarding escrow accounts and escrow agreements; establish requirements for servicing agreements; codify the requirement for a disclaimer in advertisements; clarify the fiduciary duties of a mortgage broker-dealer; include additional “dishonest and unethical practices” in WAC 460-33A-090; clarify the requirements for appraisals; clarify investors’ rights to receive information and access records concerning their investments; update recordkeeping requirements in WAC 460-33A-115; and make other updates and changes.

Questions concerning this rulemaking notice may be directed to Jill Vallely at jill.vallely@dfi.wa.gov or (360) 902-8801.

Documents

Submit Your Comments

If you have any questions or comments, please contact Jill Vallely at (360) 902-8801 or by email at jill.vallely@dfi.wa.gov.


Rulemaking: Correcting References to Securities Act of Washington Amended

The Securities Division has amended WAC 460-10A-215, 460-20B-035, 460-24A-020 & -045, 460-33A-010 & -015, and 460-44A-501 in order to correct references made to definitions found in the Securities Act of Washington, RCW 21.20.005. The Division has not revised the definitions themselves.

Recently, the Office of the Code Reviser revised the definitions section of the Securities Act of Washington, RCW 21.20.005, by alphabetizing the defined terms. This re-ordering resulted in a re-numbering of the defined terms in this section. As a result, the Washington Administrative Code now contains several inaccurate references.

The Division has now amended its rules to correct these inaccuracies. A copy of the rulemaking order (Form CR-103) is linked below, in addition to the text of the amendments.

Questions?

Questions concerning this rulemaking notice may be directed to Dan Matthews at dmatthews@dfi.wa.gov or (360) 902-8785.

Documents

Sections Amended


Completed Rulemaking Archive


Rulemaking Steps

Generally, rulemaking takes place in three distinctive steps based on filings required by the Office of the Code Reviser:

  1. CR-101 Pre-proposal Statement of Inquiry. At this stage, proposed text is usually not available. Comment is invited on whether rules in the areas identified in the CR-101 are needed and, if so, the content of those rules.
  2. A CR-102 Rulemaking Proposal is filed if it is decided to proceed. Proposed text is filed with the CR-102 and a comment period and public hearing are scheduled.
  3. After the comment period and public hearing, a CR-103 Rulemaking Order will be filed if it is decided to proceed with the rule. The final text is included with the CR-103. The newly adopted rules are generally effective 31 days after filing with the Code Reviser.

Once a rule has been adopted, it becomes a part of the Washington Administrative Code (WAC).

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