WSR 97-08-060
PREPROPOSAL STATEMENT OF INQUIRY
DEPARTMENT OF
FINANCIAL INSTITUTIONS
[Filed April 1, 1997, 8:41 a.m.]
Subject of Possible Rule Making: Definition of dishonest and unethical practices under RCW 21.20.110(7) for broker-dealers and securities salespersons and for investment advisers and investment adviser representatives.
Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 21.20.450.
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The present rules defining dishonest and unethical practices do not provide sufficient guidance for broker-dealers and salespersons and for investment advisers and representatives on their responsibilities when recommending securities transactions for their customers.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The Securities and Exchange commission governs broker-dealers and investment advisers. The rules considered for adoption are being developed through a notice and comment procedure that included the SEC.
Process for Developing New Rule: The rules being considered are uniform rules that are being developed through a national notice and comment process.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Suzanne Sarason, Securities Division, Department of Financial Institutions, P.O. Box 9033, Olympia, WA 98507-9033, voice (360) 902-8760, FAX (360) 586-5068, e-mail ssarason@dfi.wa.gov.
March 27, 1997
John L. Bley
Director