PREPROPOSAL STATEMENT OF INQUIRY
Subject of Possible Rule Making: Broker-dealer services at financial institutions proposed, chapter 460-21C WAC.
Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 21.20.450(1).
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The proposed rules will provide clarification regarding the methods of disclosure necessary to help customers distinguish the broker-dealer services from those of financial institutions.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The National Association of Securities Dealers ("NASD") has adopted rule 2350 addressing the subject of broker-dealer services at financial institutions. The North American Securities Administrators Association ("NASAA") appointed a committee to develop a uniform rule in coordination with the NASD and rule 2350. The proposed rule is based upon the uniform rule, as adopted by NASAA.
Process for Developing New Rule: The language for the proposed rules was developed by NASAA committee as a uniform rule and mirrors the language of NASD rule 2350 which was adopted through the federal rule-making process of the Securities and Exchange Commission and included all applicable notice provisions and comment periods. The Uniform Rule was then subject to notice and comment, prior to being adopted by NASAA.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Kristina L. Kneip, Department of Financial Institutions, Securities Division, P.O. Box 9033, Olympia, WA 98507-9033, (360) 902-8823.
October 6, 1999