WSR 18-13-026
AGENDA
DEPARTMENT OF
FINANCIAL INSTITUTIONS
[Filed June 8, 2018, 3:24 p.m.]
Semi-Annual Agenda for Rules Under Development
July 1 – December 31, 2018
PUBLIC RECORDS ACT RULE MAKING
•Public Records Act. Finalize adoption of rules under chapter 208-12 WAC (public records) to be consistent with recent amendments to the Public Records Act, chapter 42.56 RCW (EHB 1595, chapter 304, Laws of 2017). The rules will also be amended to make some technical and housekeeping changes, and update information related to the department of financial institutions' public records request process. This chapter applies to all divisions within the agency.
DIVISION OF BANKS
•Banks and trusts. Amend chapter 208-536 WAC for technical clean-up and compatibility with the enabling provisions of Title 30B RCW, Washington Trust Institutions Act, which became effective on January 5, 2015. Contemplated revisions include additional clarification on:
ºFrequency of trust company examinations.
ºInsurance requirements.
ºBackground checks requirements for officers, directors, and principal shareholders.
ºAdditional "outside" director requirements.
ºCall report definitions and submission requirements.
ºCapital requirements.
ºDividends.
ºPledging prohibitions and exceptions.
ºPatriot Act, Bank Secrecy Act, and antimoney laundering requirements.
ºCompatibility with OCC collective investment trust fund rules.
ºOther miscellaneous changes including updating to gender-neutral language, updating internal citations to RCW and WAC, and any other technical cleanup, as needed.
DIVISION OF CONSUMER SERVICES
•Consumer Loan Act. Finalize and adopt rules under chapter 208-620 WAC to allocate the residential mortgage loan servicing requirements in the act between investors, master servicers and subservicers.
•Uniform Money Services Act. Finalize and adopt rules under chapter 208-690 WAC to implement chapter 30, Laws of 2017. Examples include clarifying if necessary the new definition of virtual currency; further clarifying the payment processing and other exemptions; delineating when a currency exchange company must have a bond for their online activity; further clarifying the new time frame by which companies must identify and report their authorized delegates to the department; further clarifying the permissible investment requirements for companies that transmit virtual currency; and further clarifying the disclosure requirements for virtual currency transmitters.
•Student Education Loan Servicers. Adopt rules to implement chapter 62, Laws of 2018, under the Consumer Loan Act, chapter 31.04 RCW. The law (E2SSB 6029) creates a full regulatory program for companies that service student education loans. The rules will include definitions, exemptions for certain private educational institutions, affirmative activities licensees must conduct, and prohibited practices that may subject noncompliant companies to enforcement action. The rules will also set fees and an assessment to fund the agency's regulation of the industry and will direct a portion of the assessment to fund a student education loan advocate in the Washington student achievement council.
DIVISION OF CREDIT UNIONS
•Member business loans. Continue to work with the National Credit Union Administration towards agreement on the proposed member business loans rule, chapter 208-460 WAC.
•Credit union investment practices. Start rule making to modernize the investment rule, chapter 208-436 WAC (last updated in 1996).
DIVISION OF SECURITIES
•Investment adviser and broker-dealer fees. Adopt rules to increase filing fees for investment advisers, broker-dealers, investment adviser representatives, and securities salespersons upward by no more than $15 pursuant to SB 6024 (2018).
•Adoption of the North American Securities Administrators Association (NASAA) statements of policy. Amendment of WAC 460-16A-205, which sets forth NASAA statements of policy adopted by the securities administrator. Since the rule was last amended, NASAA has recently amended or promulgated statements of policy in connection with state-registered securities offerings. The division intends to amend its rules to reference the updated statements of policy and incorporate a reference to a new statement of policy relating to electronic offering documents and electronic signatures in connection with registered securities offerings.
•Investment advisers. Amendments to investment adviser rules contained in chapter 460-24A WAC to adopt newly promulgated NASAA model rules applicable to investment advisers, make revisions to reflect changes in state and federal law, and make other clarifying and technical updates.
•Exempt securities. Amend WAC 460-42A-030, which establishes an exemption from registration for municipal securities that are highly rated to make technical corrections.
•Franchise registration. Amendment of chapter 460-80 WAC to mandate electronic filing of applications for franchise registration.
•Exempt transactions. Amend WAC 460-44A-503 to mandate electronic filing of Rule 506 exempt offering notice filings through the electronic filing depository system.
•Exempt transactions. Amend chapter 460-44A WAC to make certain ministerial updates to these exempt transaction rules in light of amendments to related federal rules.