WSR 16-01-116 AGENDA DEPARTMENT OF FINANCIAL INSTITUTIONS [Filed December 17, 2015, 3:49 p.m.]
Semi-Annual Agenda for Rules Under Development
January 1 - June 30, 2016
AGENCY ADJUDICATIVE PROCEDURES
. | Continuation of the rules process begun in 2015 to adopt rules under chapter 208-08 WAC, adjudicative procedures, to modernize the chapter and make it more procedurally efficient. This chapter of rules applies to all divisions within the agency. Additional changes to the rules will be made for need, clarity and consistency, and to guide participants. These rules are beneficial to or requested or supported by the regulated entities, local governments or small businesses that it affects. |
DIVISION OF BANKS
. | Propose and adopt rules to implement the new enabling provisions of Title 30B RCW, Washington Trust Institutions Act ("TIMA"), which was effective January 5, 2015. Rules are necessary to: |
o | Further determine, within the discretion authority granted the director under TIMA, which fiduciaries will be subject to a trust company regulation and which will not; and if so, what will be the scope of the regulation for certain miscellaneous but applicable persons. See authority under RCW 30B.04.005(43), 30B.04.020(2), 30B.10.005(3), and 30B.08.080. |
o | Establish new requirements for trust company applications and formation, authorized by RCW 30B.08.010. |
o | Prudential Fiduciary Standards - Examination, e.g., M-O-E-C-A (instead of CAMELS). Authorized by chapters 30B.10 and 30B.24 RCW. |
o | Prudential standards for supervisory direction, authorized by chapter 30B.46 RCW. |
These rules are required by state law.
. | Amend chapter 208-512 WAC to modernize securities investment standards rules. Section 939A of the Dodd-Frank Act authorized federal banking regulators to eliminate statutory protections for national credit rating agencies associated with investments (i.e., Standard & Poor's, Moody's, and Fitch) and to establish new standards of creditworthiness. In reviewing its compliance with Section 939A of the Dodd-Frank Act, the division of banks identified one or more sections of chapter 208-512 WAC which need modernization to conform to the Dodd-Frank Act and to also assure "parity" for Washington state-chartered banks and savings banks with national banks in relation to securities investment standards. Accordingly, the division of banks is anticipating repealing WAC 208-512-110 through 208-512-117 inclusive, and to propose and adopt a modern, comprehensive set of rules on Bank Investment Standards set forth in a new chapter 208-512B WAC. These rules are beneficial to or requested or supported by regulated entities, and are either required by federal law, or to eliminate rule provisions superseded by more recent state statute. |
. | "Lending limits" rule re: Derivatives & Securities Lending. Decide whether Office of the Comptroller of the Currency revisions in this area are necessary to be adopted for Titles 30A and 32 RCW banks, and if so, propose and make amendments to chapter 208-512A WAC. This would be necessary to bring Titles 30A and 32 RCW banks into parity with national banks unless existing state rules would benefit Titles 30A and 32 RCW banks more. These rules are beneficial to or requested or supported by regulated entities. |
. | Propose and adopt rules for a technical cleanup of the existing chapter 208-512 WAC consistent with the rule making to be proposed and adopted above. These rules are beneficial to or requested or supported by regulated entities. |
DIVISION OF CONSUMER SERVICES
. | Consumer Loan Act - Continuation of the rules process begun in 2015 to adopt rules under chapter 208-620 WAC to implement chapter 229, Laws of 2015. The amended rules will be based on changes to the law that are technical in nature; make the law more consistent with the companion act, the Mortgage Broker Practices Act; implement the director's license conditioning authority; implement liquidity, operating reserves and tangible net worth requirements for residential loan servicers; and implement a licensing prohibition for a gross misdemeanor involving dishonesty. Additional changes to the rules will be made for need, clarity and consistency, and to guide industry to compliance. These rules are required by federal or state law and are beneficial to or requested or supported by the regulated entities, local governments or small businesses that it affects. |
. | Mortgage Broker Practices Act - Continuation of the rules process begun in 2015 to adopt rules under chapter 208-660 WAC to implement chapter 229, Laws of 2015. The amended rules will be based on changes to the law that are technical in nature; make the law more consistent with the companion act, the Consumer Loan Act; and implement the director's license conditioning authority. Additional changes to the rules will be made for need, clarity and consistency, and to guide industry to compliance. These rules are required by federal or state law and are beneficial to or requested or supported by the regulated entities, local governments or small businesses that it affects. |
. | Escrow Agent Registration Act - Continuation of the rules process begun in 2015 to adopt rules under chapter 208-680 WAC to implement chapters 51 and 229, Laws of 2015. The rule amendments would guide the industry in complying with the new requirements under chapter 64.04 RCW when requested to hold and subsequently return earnest money. Additional changes to the rules will be made for need, clarity and consistency, and to guide industry to compliance. These rules are required by federal or state law and are beneficial to or requested or supported by the regulated entities, local governments or small businesses that it affects. |
. | Uniform Money Services Act - Continuation of the rules process begun in 2015 to adopt rules under chapter 208-690 WAC for need, clarity and consistency. Examples include: Clarification of the advertising rules for authorized delegates; more detail provided on the type of information security and data protection processes a licensee must have in place for compliance with federal law; clarification of the permissible investment requirements; information on circumstances triggering a bond increase requirement; and information on the business types that may trigger an increase in security requirement. These rules are beneficial to or requested or supported by the regulated entities, local governments or small businesses that it affects. |
. | Implementation of the Mortgage Lending Fraud Prosecution Account - Continuation of the rules process begun in 2015 to adopt rules under chapter 208-700 WAC to implement chapter 229, Laws of 2015, by making the rules consistent with the changes to the definition of the mortgage lending process and make technical changes. These rules are required by federal or state law and are beneficial to or requested or supported by the regulated entities, local governments or small businesses that it affects. |
. | Check Cashers & Sellers Act - Continuation of the rules process begun in 2015 to adopt rules under chapter 208-630 WAC regarding information security, business resumption and records disposal. These rules are required by federal or state law, and requested or supported by the regulated entities, local governments or small businesses that it affects. |
DIVISION OF CREDIT UNIONS
. | Amendments to modernize chapter 208-436 WAC supervisory approval of credit union investments (last updated in 1996). The amendments will streamline the application process, clarify safety and soundness expectations for the increased investment authority in credit union subsidiary organizations as recently amended in SB 5757, and set standards for use of derivatives as a risk mitigation tool for interest rate risks. Rules are beneficial to or requested or supported by the regulated entities, local governments or small businesses that it affects. |
DIVISION OF SECURITIES
. | Propose rules to implement the small business retirement marketplace, as required by ESSB 5826. Rules are required by state law. |
. | Amendments to the crowdfunding rules contained in chapter 460-99C WAC and the limited offering exemption under WAC 460-44A-504. On October 30, 2015, the Securities and Exchange Commission (SEC) proposed amendments to federal Rule 147 and federal Rule 504. The Washington crowdfunding rules contained in chapter 460-99C WAC are currently only available to offerings that are exempt federally under Section 3 (a)(11) of the Securities Act of 1933 and Rule 147 adopted thereunder. In addition, the limited offering exemption under WAC 460-44A-504 is premised on the offering being exempt under federal Rule 504 of Regulation D. SEC has proposed a number of amendments to Rule 147 to modernize it. Further, SEC has proposed to increase the offering amount limit under federal Rule 504 from $1 million to $5 million. Should SEC adopt any of the proposed amendments to Rule 147 or Rule 504, the division plans to amend its own related rules in the interest of facilitating capital formation. Rules are beneficial to or requested or supported by regulated entities, local governments or affected small businesses. |
. | Propose rule(s) to require notice filings in connection with crowdfunding offerings conducted under federal regulation crowdfunding, 17 C.F.R. § 227.100 through .503. The federal rules under regulation crowdfunding were adopted by SEC on October 30, 2015, and are distinct from the state crowdfunding rules under chapter 460-99C WAC. Rules are required by federal law. |
|
