WSR 12-13-073

AGENDA

DEPARTMENT OF

FINANCIAL INSTITUTIONS

[ Filed June 19, 2012, 9:46 a.m. ]


Semi-Annual Agenda for Rules Under Development

July 1 - December 31, 2012



DIVISION OF BANKS


Chapter 208-512 WAC, amendments to bring state-chartered commercial banks and savings banks in compliance with Section 611 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which takes effect January 21, 2013. This rule making is necessary to permit state-chartered commercial banks and savings banks to continue to engage in "derivatives transactions" on or after January 21, 2013. Section 611 of the Dodd-Frank Act in effect states that after this date, no state bank may engage in a "derivatives transactions" unless the state's lending limits laws (which are set forth in detail by rule in chapter 208-512 WAC) contain provisions addressing a state bank's credit exposure to "derivatives transactions." "Derivatives transactions" are common, since banks make regular investments in currency, interest-rate swaps, and asset-backed securities as part of their overall cash management and liquidity management strategies. This rule complies with the OFM guidelines implementing the governor's executive order suspending noncritical rule making and falls under the exemption that it is required by federal law and it is beneficial to or requested or supported by the regulated entities that it affects.

DIVISION OF CONSUMER SERVICES


Chapter 208-660 WAC, amendments relating to the Mortgage Broker Practices Act. The advertising rules must be amended to protect consumers from financial harm, aid the regulated industries by having consistent rules within the mortgage marketplace, and to make technical changes for clarity and consistency. These rules comply with the OFM guidelines implementing the governor's executive order suspending noncritical rule making and falls under the exemption of "beneficial to or requested or supported by the regulated entities, local governments or small businesses that it affects" and "necessary to respond to current economic conditions or assist in long-term economic recovery, to include employment assistance, consumer protection or government reform."
Chapter 208-620 WAC, amendments relating to the Consumer Loan Act. The advertising and loan servicing rules must be amended to protect consumers from financial harm, aid the regulated industries by having consistent rules within the mortgage marketplace, and to make technical changes for clarity and consistency. These rules comply with the OFM guidelines implementing the governor's executive order suspending noncritical rule making and falls under the exemption of "beneficial to or requested or supported by the regulated entities, local governments or small businesses that it affects" and "necessary to respond to current economic conditions or assist in long-term economic recovery, to include employment assistance, consumer protection or government reform."

DIVISION OF SECURITIES


Chapter 460-24A WAC, amendments to rules relating to investment advisers. The Dodd-Frank Wall Street Reform and Consumer Protection Act raised the threshold for federal jurisdiction from $25 million AUM to $100 million AUM. This will result in Washington gaining approximately three hundred new IA licensees that switch from federal to state jurisdiction, an increase of sixty percent. Rule making will be necessary to address regulatory issues presented by these new licensees. These rules comply with the OFM guidelines implementing the governor's executive order suspending noncritical rule making and falls under the exemption of "required by federal or state law."
WAC 460-80-140, amendment to correct a citation relating to financial statements in franchise offerings. The rule contains a typo in the C.F.R. citation; correcting it will eliminate confusion by those it regulates because they will know which C.F.R. is referenced. This rule complies with the OFM guidelines implementing the governor's executive order suspending noncritical rule making and falls under the exemption of "beneficial to or requested or supported by the regulated entities, local governments, or small business that it affects."
WAC 460-10A-160, amendment to remove references to securities manuals that are no longer in existence. Updating the rule will be beneficial [to] those that might want to rely on our manual exemption as the outdated references make it less relevant and available to securities issuers. This rule complies with the OFM guidelines implementing the governor's executive order suspending noncritical rule making and falls under the exemption of "beneficial to or requested or supported by the regulated entities, local governments, or small business that it affects."

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