WSR 98-22-013
PROPOSED RULES
DEPARTMENT OF
FINANCIAL INSTITUTIONS
[Filed October 23, 1998, 1:38 p.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 98-15-109.
Title of Rule: WAC 460-28A-015 All advertisements to be filed.
Purpose: To amend WAC 460-28A-015 to clarify the advertisement prefiling requirement for registered offerings of securities.
Statutory Authority for Adoption: RCW 21.20.450.
Statute Being Implemented: Chapter 21.20 RCW.
Summary: This amendment is being proposed to clarify the time period for filing of sales and advertising literature and promotional material relating to registered offerings of securities. WAC 460-28A-015(1) currently provides that copies must be filed five days before intended use. It is proposed to amend the requirement to provide a five business day standard.
Reasons Supporting Proposal: To provide a business day standard for all filed advertising literature and promotional materials addressed by the rule.
Name of Agency Personnel Responsible for Drafting: Brad Ferber, 210 11th Avenue S.W., Olympia, WA, (360) 902-8760; Implementation: John L. Bley, 210 11th Avenue S.W., Olympia, WA, (360) 902-8760; and Enforcement: Deborah Bortner, 210 11th Avenue S.W., Olympia, WA, (360) 902-8760.
Name of Proponent: Department of Financial Institutions, Securities Division, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: Following review of this rule according to Executive Order 97-02, Securities Division staff acknowledged the distinction between calendar days and business days. Subsection (1) of the rule contains an apparent calendar day standard for prefiling of sales and advertising literature and promotional materials, while subsection (2) of the rule specifies a business day standard for the disallowance of filed materials. In the interests of consistency and clarity it is being proposed to amend subsection (1) to also utilize the business day standard for filing of sales and advertising literature and promotional materials.
Proposal Changes the Following Existing Rules: WAC 460-28A-015(1) is proposed to be amended to provide a business day standard for all filed advertising literature and promotional materials.
No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposal does not have economic impact on business.
Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. The Department of Financial Institutions is not a listed agency in section 201.
Hearing Location: Department of Financial Institutions, Securities Division, Executive Conference Room, 300 General Administration Building, 210 11th Avenue S.W., Olympia, WA 98504, on December 15, 1998, at 1:00 p.m.
Assistance for Persons with Disabilities: Contact Darlene Christianson by December 14, 1998, TDD (360) 664-8126, or (360) 902-8760.
Submit Written Comments to: Brad Ferber, P.O. Box 9033, Olympia, WA 98507-9033, fax (360) 586-5068, by December 14, 1998.
Date of Intended Adoption: January 15, 1998 [1999].
October 21, 1998
John L. Bley
Director
OTS-2331.1
AMENDATORY SECTION (Amending Order 342, filed 9/29/75)
WAC 460-28A-015 All advertisements to be filed. All sales and advertising literature and promotional material, other than that exempted by these rules, shall be governed by the following:
(1) The registration applicant or registrant shall file with the division, at least five business days before its intended dissemination, one copy of each item of literature or material.
(2) If not disallowed by the administrator by written notice or otherwise within three business days from the date filed, the literature or material may be disseminated.
(3) No formal approval of the literature or material shall be issued by the administrator.
(4) The disseminator of the literature or material shall be responsible for the accuracy and reliability of the literature and material, and its conformance with the code and these rules.
[Order 342, § 460-28A-015, filed 9/29/75; Order 304, § 460-28A-015, filed 2/28/75, effective 4/1/75. Formerly chapter 460-28 WAC.]