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Division of Securities

The primary mission of the Division of Securities, which was established in the early 1930s, is to protect the investing public and promote confidence in the capital markets. More...

News For Industry

Rulemaking: Correcting References to Securities Act
The Securities Division is considering proposing to amend certain WAC sections in order to correct references made to definitions found in the Securities Act of Washington, RCW 21.20.005. The Division is not seeking to revise the definitions themselves.

Memo Regarding Rulemaking (PDF)*
Rulemaking Documents and Information
Notice Regarding Investment Adviser Renewal
On October 27, 2011, The Securities Division issued an investment adviser renewal notice, a renewal letter for investment advisers, and a new Fiscal Year End Report Form.

Renewal Notice
Renewal Reminder Letter to Investment Advisers (PDF)*
Fiscal Year End Report Form (PDF)*
Notice Regarding Investment Adviser Switch to State Registration
On October 21, 2011, the Securities Division of the Department of Financial Institutions issued a notice to investment advisers registered with the U.S. Securities and Exchange Commission ("SEC") regarding the SEC’s new rule switching mid-size investment advisers (with assets under management between $25 million to $100 million) from SEC oversight to state registration.

Notice Regarding Investment Adviser Switch (PDF)*
Frequently Asked Questions Regarding Switch
Information for Investors from the SEC (PDF)*
Rulemaking Update: NASAA Statements of Policy Rules Adopted - Effective 07/09/11
The Securities Division has amended WAC 460-16A-205. The Securities Division uses Guidelines and Policies created by the North American Securities Administrators Association ("NASAA") as the basis for regulating certain offerings and licensees. The amendment adopts the latest versions of all NASAA Guidelines and Policies previously adopted in Washington.

Adopted Rules (PDF)*
Rulemaking Documents and Information
New Interpretive Statements - Accredited Investors Definition - Indebtedness Secured By Primary Residence
The Securities Administrator interprets the definition of “accredited investor” as it pertains to natural persons to allow the exclusion of the amount of indebtedness secured by the primary residence up to its fair market value. Any indebtedness secured by a natural person’s primary residence that is in excess of the fair market value of the residence shall be considered a liability and deducted from the person’s net worth.

Securities Act Interpretive Statement - 23
Franchise Act Interpretive Statement - FIS-07
Accredited Investor Rules Adopted
The Securities Division amended WAC 460-44A-501 and 460-80-108 to conform the definitions of "accredited investor" contained therein to the definition of that term in the Dodd-Frank Wall Street Reform and Consumer Protection Act enacted July 21, 2010, Public Law No. 111-203.

Adopted Rules and Rulemaking Documents
Red Flags Rule Effective December 31, 2010
The Federal Trade Commission (FTC) issued the Red Flags regulations under the Fair and Accurate Credit Transition Act of 2003, which requires the establishment of guidelines for financial institutions and creditors regarding identity theft. The FTC’s definition of a creditor in the Act was amended on December 8, 2010. The FTC delayed implementation of the rule multiple times to allow for Congressional clarification of this issue. If you have a question about the rule, the FTC has set up a toll free number at 1-877-FTC-HELP (1-877-382-4357)(tty 1-866-653-4261).

FTC Press Release Announcing Amendments to the FACT Act
FTC’s Red Flags Rule Website
Alert To Those Who Are Considering Selling Life Settlement Investments
The Securities Division has received a number of inquiries about whether persons who are not licensed as securities salespersons or broker-dealers may sell investments in life settlements to their customers. This alert explains how investments in life settlements may be securities and discusses the possible consequences of selling such investments.

Alert: Considering Selling Life Settlement Investments?
Form D Notice Filing Requirements
Summary of filing requirements applicable to the private and limited offering exemptions adopted under the Securities Act of Washington that are designed to coordinate with federal Regulation D.

Summary of Filing Requirements.
Small Business Offering Options Decision Tree
This interactive decision tree is intended to help you evaluate whether your business may raise money by selling securities in a strictly private offering and if so, explore some private offering exemptions that may apply, or if it will be necessary for your company to register the offering.

Begin the Interactive Decision Tree.

Note: If you have a popup blocker installed, you may need to turn it off to open the decision tree.
Tenancy In Common
Tenancy in Common (PDF) - Agents, broker-dealers, and others offering or selling tenancy in common interests are reminded to comply with the Securities Act of Washington.

News For Investors

Rhonda Breard Updates
The Washington State Department of Financial Institutions has been receiving calls and complaints from customers of Rhonda Breard who have learned their broker dealer or insurance company has no record of brokerage accounts or annuities they thought they had purchased through Rhonda Breard and Breard & Associates. Rhonda Breard Updates & Information for Investors.
Wells Fargo Auction Rate Securities Update
Auctions for most auction rate securities (ARS) held by brokerage firm customers nationwide failed in February 2008. As a result of this failure, DFI’s Securities Division opened investigations into sales of ARS in the State of Washington by a number of broker-dealers, including the Wells Fargo broker-dealers. DFI’s Securities Division also joined a nationwide task force of state securities regulators to address sales practices relating to ARS and to help investors get access to their frozen funds. Learn More.
DFI Obtains Temporary Restraining Order Against Hoss Mortgage Investors, Inc.
On September 15, 2009, the Washington State Department of Financial Institutions obtained a temporary restraining order against Hoss Mortgage Investors, Inc., Todd Allan Hoss and others, prohibiting them from distributing or otherwise disposing of assets belonging to Hoss Mortgage Investors, Inc. until a receiver can be appointed to take control of and disburse the assets. Learn More.
DFI Cautions Investors: Make Sure Your Decisions Amid The Current Wall Street Crisis Are Informed And Researched
DFI’s Securities Division is urging Washington State investors to make informed decisions about their long-term financial holdings and to seek the advice of a trusted investment adviser or financial planner before making any sudden moves with their money, particularly during the ongoing market volatility and unprecedented turmoil on Wall Street. Learn more.
Selecting Brokerage and Investment Advisory Services That Meet Your Needs
DFI has published an investor bulletin on how investors can improve their chances of selecting brokerage and investment advisory services that meet their needs. View bulletin (PDF)*.
Investment Scams Often Lurk Behind Ominous Economic Forecasts
The Washington State Department of Financial Institutions (DFI) Director Scott Jarvis joins the North American Securities Administrators Association (NASAA) in reminding investors not to allow recent negative economic news and stock market volatility to lead them into high-risk speculative investments. Learn more.
Forex: Risky Business?
Recently, there has been a rise in Forex transactions. Forex trading can involve a high degree of risk and may be more suitable for market professionals rather than the average retail investor. Learn more.
Federal Savings, LLC Update
The most recent information on Federal Savings, LLC. Learn more.
What You Should Know Before Investing in Mortgage Paper Securities
Answers to frequently asked questions about investing in mortgage paper securities. Learn more.

Licensee Information

Securities Orders, Licensee Database, Filings

View Securities Orders by Year: Orders are listed by year with the most recent at the top.
Search Securities Orders: Use the DFI enforcement actions search engine to find a specific order.
Search the Licensee Database: Find information about filings made with the Division.
Search the National Association of Securities Dealers: Find information about your stockbroker (broker/dealer salesperson).
Search the SEC Database: Find information about your investment adviser firm.

Laws and Rules

Laws & Rules

Contact Us

Mailing Address:
Department of Financial Institutions
Securities Division
PO Box 9033
Olympia, WA 98507-9033

Phone Numbers:
Main Telephone Line: (360) 902-8760
Toll Free: (877) RING DFI (746-4334)
Fax: (360) 902-0524
TDD: (360) 664-8126

Please also see our staff directory.

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