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 fall within the "required by federal law" criteria of the governor's executive order suspending noncritical rule making.

     • Chapter 460-33A WAC, amendments to rules relating to mortgage paper securities. These rules regulate mortgage broker-dealers which make "hard-money" loans and sell interests in those loans to investors. As the only agency regulating these companies, it is important that the rules be regularly examined and updated to address regulatory concerns and market changes. The securities division has been working with its mortgage broker-dealer registrants for several months on revisions to the mortgage papers rules and believes that many of the amendments it proposes will be supported by registrants. Any rules that are not fully supported by industry will be necessary to protect the public welfare.

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