WSR 14-21-101

PERMANENT RULES

[Filed October 15, 2014, 11:11 a.m., effective November 15, 2014]

Effective Date of Rule: Thirty-one days after filing.

Purpose: The rule making will create a new rule at WAC 460-23B-070 regarding the termination of salespersons for issuers. RCW 21.20.080 states that if the employment or association of a salesperson for an issuer is terminated, the salesperson and the issuer must notify the securities division of the termination. However, RCW 21.20.080 does not specify how to make this notification. The new rule will specify that if the employment or association of a salesperson for an issuer is terminated, the salesperson and the issuer must notify the securities division of the termination by filing Form U5 (the Uniform Termination Notice for Securities Industry Registration) with the division. The rule will clarify how issuers and salespersons for issuers should comply with the existing statute.

Statutory Authority for Adoption: RCW 21.20.070, 21.20.080, 21.20.450.

Adopted under notice filed as WSR 14-17-037 on August 13, 2014.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 1, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 1, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

Date Adopted: October 15, 2014.

Scott Jarvis

Director