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                                                     SENATE BILL 5181

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State of Washington                              53rd Legislature                             1993 Regular Session

By Senator Moore

Read first time 01/15/93.  Referred to Committee on Labor & Commerce.

Requiring securities advisers to provide a copy of new account forms.

          AN ACT Relating to securities advisers disclosures; and amending RCW 21.20.020.

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

        Sec. 1.  RCW 21.20.020 and 1959 c 282 s 2 are each amended to read as follows:

          It is unlawful for any person who receives any consideration from another party primarily for advising the other person as to the value of securities or their purchase or sale, whether through the issuance of analyses or reports or otherwise:

          (1) To employ any device, scheme, or artifice to defraud the other person; ((or))

          (2) To engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon the other person; or

(3) To fail to provide an exact copy of a client new account form to the client within thirty days of opening of the account, for purposes of enabling the client to verify the accuracy of the information set forth in the form, including a statement of the client's written investment objectives.

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