S-4028               _______________________________________________

                                                   SENATE BILL NO. 6811

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

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

Read first time 1/26/90 and referred to Committee on  Financial Institutions & Insurance.

AN ACT Relating to eliminating investment advisor registration for a registered broker-dealer or broker-dealer salesperson acting as a financial planner; and amending RCW 21.20.040.

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

        Sec. 1.  Section 4, chapter 282, Laws of 1959 as last amended by section 2, chapter 391, Laws of 1989 and RCW 21.20.040 are each amended to read as follows:

          (1) It is unlawful for any person to transact business in this state as a broker-dealer or salesperson, unless he or she is registered under this chapter:  PROVIDED, That an exemption from registration as a broker-dealer or salesperson to sell or resell condominium units sold in conjunction with an investment contract, may be provided by rule or regulation of the director as to persons who are licensed pursuant to the provisions of chapter 18.85 RCW.  It is unlawful for any broker-dealer or issuer to employ a salesperson unless the salesperson is registered or exempted from registration.  It is unlawful for any person to transact business in this state as an investment adviser unless (a) the person is so registered under this chapter, or (b) the person is registered as a broker-dealer under this chapter, or (c) the person's only clients in this state are investment companies as defined in the Investment Company Act of 1940, or insurance companies.  It is unlawful for any person to transact business in this state as an investment adviser salesperson or for any investment adviser to employ an investment adviser salesperson unless such person is registered.

          (2) It is unlawful for any person to hold himself out as, or otherwise represent that he or she is a "financial planner", "investment counselor", or other similar term, as may be specified in rules adopted by the director, unless the person is registered as an investment adviser ((or)), investment adviser salesperson, broker-dealer, or salesperson, is exempt from registration under RCW 21.20.040(1), or is excluded from the definition of investment adviser under RCW 21.20.005(6).