HOUSE BILL ANALYSIS

                  HB 2885

Title:  An act relating to the definition of investment adviser.

Brief Description:  Defining investment adviser.

Sponsors:  Representatives Hatfield, Benson, Barlean, Santos, Talcott and Bush.

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Meeting Date: February 3, 2000.

Bill Analysis Prepared by: Charlie Gavigan (786-7340).

Background: Securities are regulated under federal and state laws.  In Washington, securities are regulated by statute and through the Department of Financial Institutions.

An investment adviser under state law is any person who engages in the business of advising others regarding investing in securities or valuing securities.  Investment adviser also includes persons who hold themselves out as financial advisers.

Summary of Bill: A person is not an investment adviser simply because he or she is a member of an organization using Afinancial planner@ or Afinancial adviser@ in its name.

Appropriation:  None.

Fiscal Note: Not requested.

Effective Date: Ninety days after the session in which the bill passes.