WSR 98-15-109

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF

FINANCIAL INSTITUTIONS

[Filed July 20, 1998, 9:36 a.m.]



Subject of Possible Rule Making: To amend WAC 460-28A-015 to clarify the advertisement prefiling requirement for registered offerings of securities.

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: To clarify the time period for filing of sales and advertising literature and promotional material relating to registered offerings of securities. WAC 460-28A-015(1) currently provides that copies must be filed five days before intended use. It is proposed to amend the requirement to provide a five business day standard.

Process for Developing New Rule: Following review of this rule according to Executive Order 97-02, Securities Division staff acknowledged the distinction between calendar days and business days. Subsection (1) of the rule contains an apparent calendar day standard for prefiling while subsection (2) of the rule specifies a business day standard for the disallowance of filed materials. In the interests of consistency, fairness and clarity it is being proposed to amend subsection (1) to also utilize the business day standard for filing of sales and advertising literature and promotional materials.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Brad Ferber, Securities Division, P.O. Box 9033, Olympia, WA 98507-9033, (360) 902-8760, fax (360) 586-5068.

July 17, 1998

John L. Bley

Director

OTS-2331.1

AMENDATORY SECTION (Amending Order 342, filed 9/29/75)



WAC 460-28A-015  All advertisements to be filed. All sales and advertising literature and promotional material, other than that exempted by these rules, shall be governed by the following:

(1) The registration applicant or registrant shall file with the division, at least five business days before its intended dissemination, one copy of each item of literature or material.

(2) If not disallowed by the administrator by written notice or otherwise within three business days from the date filed, the literature or material may be disseminated.

(3) No formal approval of the literature or material shall be issued by the administrator.

(4) The disseminator of the literature or material shall be responsible for the accuracy and reliability of the literature and material, and its conformance with the code and these rules.



[Order 342, 460-28A-015, filed 9/29/75; Order 304, 460-28A-015, filed 2/28/75, effective 4/1/75. Formerly chapter 460-28 WAC.]

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