Washington State Department of Financial Institutions

New Laws Affecting Broker-Dealers and Investment Advisers

Date: July 15, 2010

Contact: Adult Protective Services of DSHS (360) 725-2531

Concerning the Financial Exploitation of Vulnerable Adults

In 2010, the Washington State Legislature passed laws concerning the financial exploitation of vulnerable adults that apply to broker-dealers and investment advisers.

Those laws permit a broker-dealer or investment adviser to refuse a transaction if the broker-dealer or investment adviser reasonably believes that financial exploitation of a vulnerable adult, as defined in RCW 74.34.020, may have occurred, may have been attempted, or is being attempted. 2010 Wash. Laws 133 (PDF).

These laws also require broker-dealers and investment advisers to provide training concerning the financial exploitation of vulnerable adults to employees who are required to be registered in the state of Washington as salespersons or investment adviser representatives under RCW 21.20.040 and who have contact with customers and access to account information on a regular basis and as a part of their job. Id (PDF).

These laws are administered by the Department of Social and Health Services (DSHS).

Questions about these laws may be directed to Adult Protective Services of DSHS by telephone at (360) 725-2531.

DFI