Washington State Proposes Amendment to Definitions
The Dodd-Frank bill has certainly created new responsibilities for the SEC and CFTC. Also affected are the state securities divisions which have laws and regulations referencing, or based on, various federal securities laws. Because federal laws have changed under Dodd-Frank, the state securities laws (generally known as “Blue Sky” laws) will eventually need to be amended as well. Over the coming months we will see various state securities divisions propose changes to regulations designed to correspond to the new laws under Dodd-Frank. One state, Washington (which is known to have a good securities division), has recently proposed rules to “amend the definition of “accredited investor” contained in its rules to conform to federal law through expedited rule making.”
Additionally, we may see state legislatures rewriting large parts of their securities laws to correspond with the changes at the federal level. Such effort may be coordinated by NASAA or through another iteration of the Uniform Securities Act.
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