SENATE BILL REPORT

SB 6811

BYSenators von Reichbauer, Smitherman, Matson, Newhouse, Vognild, Sellar, Warnke, Johnson and McMullen

Eliminating investment advisor registration for a registered broker-dealer or broker-dealer salesperson acting as a financial planner.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 2, 1990

Senate Staff:Walt Corneille (786-7416)

AS OF FEBRUARY 1, 1990

BACKGROUND:

In 1989 legislation was enacted requiring anybody holding themselves out to the public as a financial planner to register as an investment advisor.  That law made it unlawful for a person to represent that he or she is a financial planner, investment counselor or other similar term, unless that person was registered either as an investment advisor or an investment advisor salesperson.  A registered broker-dealer or broker-dealer salesperson calling himself a financial planner or financial consultant is required to register as an investment advisor as well as the underlying registration as a broker-dealer or broker-dealer salesperson.

It has been suggested that, in light of the registration as a broker-dealer or a broker-dealer salesperson, such persons who are using the term financial planner should not be required to register as investment advisors.

SUMMARY:

It is not unlawful for a person who holds himself as a financial planner not to register as an investment advisor so long as they are a registered broker-dealer or broker-dealer salesperson.

Appropriation:  none

Revenue:   none

Fiscal Note:    none requested