S-0769.1                   _______________________________________________

                                                     SENATE BILL 5197

                              _______________________________________________

State of Washington                              53rd Legislature                             1993 Regular Session

By Senators Sutherland and Moore

Read first time .  Referred to Committee on .

Providing for apprenticeship for securities brokers.

          AN ACT Relating to apprenticeship for securities brokers; amending RCW 21.20.060; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  The legislature finds that the business ethics and practices of securities brokers can impact the financial viability of clients.

          The legislature further finds that many professions over the centuries have benefited from the quality control effect provided by the apprenticeship systems, whereby less experienced workers apprentice themselves to those who are more advanced, working in a mentor-apprentice relationship for a set time.

          The ethical standards and business judgment of brokers studying to become licensed in the state of Washington can be enhanced by the institution of a required one-year apprenticeship with a duly licensed broker as a precondition of licensure.

        Sec. 2.  RCW 21.20.060 and 1965 c 17 s 1 are each amended to read as follows:

          The application shall contain whatever information the director requires concerning such matters as:

          (1) The applicant's form and place of organization;

          (2) The applicant's proposed method of doing business;

          (3) The qualifications and business history of the applicant and in the case of a broker-dealer or investment adviser, any partner, officer, or director;

          (4) Any injunction or administrative order or conviction of a misdemeanor involving a security or any aspect of the securities business and any conviction of a felony; ((and))

          (5) The applicant's financial condition and history; and

(6) Identifying details of the applicant's one-year apprenticeship with a licensed securities broker.

          The director of licenses or the duly appointed administrator may by rule require a minimum capital for registered broker-dealers and investment advisers or prescribe a ratio between net capital and aggregate indebtedness by type or classification.

                                                           --- END ---