Washington Administrative Code Title 460 - Financial Institutions, Department of (Securities Division)
Washington Administrative Code (WAC) Title 460 – Department of Financial Institutions (Securities Division)
Overview:
WAC Title 460 governs the Securities Division of the Washington State Department of Financial Institutions (DFI). It outlines the rules and regulations related to the registration, exemption, and enforcement of securities, franchises, and business opportunities, as authorized under the Securities Act of Washington (RCW 21.20) and related laws.
The title provides specific guidance for:
Registration of securities offerings
Broker-dealer and investment adviser licensing
Exemptions from registration
Franchise and business opportunity regulation
Enforcement actions and administrative procedures
Key Chapters in Title 460:
WAC 460-10 – General Provisions
Defines terms and sets forth administrative procedures used throughout Title 460.
WAC 460-16A to 460-17A – Securities Registration and Exemptions
Covers how securities must be registered before sale unless exempt.
Addresses exemptions such as Regulation D offerings or intrastate offerings.
Includes rules on “Small Company Offering Registration” (SCOR).
WAC 460-21B to 460-24A – Broker-Dealers and Investment Advisers
Licensing requirements and conduct standards for broker-dealers, investment advisers, and their representatives.
Includes rules on custody, advertising, fees, books and records, and fiduciary duties.
WAC 460-28A to 460-28D – Franchises and Business Opportunities
Rules implementing the Washington Franchise Investment Protection Act and Business Opportunity Fraud Act.
Details registration, disclosure, and exemption procedures.
WAC 460-30A – Administrative Procedures
Governs hearings, rulemaking, and enforcement proceedings conducted by the Securities Division.
WAC 460-44A – Federal Covered Securities and Coordination
Adopts federal standards and exemptions for certain offerings and advisers to streamline dual state/federal compliance.
Legal Authority:
Primarily based on:
RCW 21.20 – Washington Securities Act
RCW 19.100 – Franchise Investment Protection Act
RCW 19.110 – Business Opportunity Fraud Act
Function of the Securities Division:
Regulates securities offerings and related professionals
Reviews registration and exemption filings
Enforces against fraud and misrepresentation
Oversees franchises and business opportunities to protect investors and entrepreneurs
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