May 20, 1993
TO: INVESTMENT ADVISERS COMMITTEE NO. 12-93
WASHINGTON ASSOCIATE INVESTMENT ADVISER MEMBERS
RE: SECURITIES BROKERS RECOVERY ACCOUNT LEGISLATION FAILS IN
WASHINGTON
__________________________________________________________
The Institute had previously advised you that legislation
had been introduced to establish a Securities Brokers Recovery
Fund in Washington. Substitute Senate Bill 5184 would have
required every "registered person" in Washington, including
investment advisors and investment advisor salespersons, to pay a
fee which would have been credited to the recovery fund.
Washington investors could have recovered compensation of the
unpaid amount on a judgment or arbitration award that represented
an actual and direct loss to the investor in a transaction or
account from the recovery fund. (See Memorandum to Investment
Advisers Committee No. 7-93 and Washington Associate Investment
Adviser Members, dated April 8, 1993.)
We are pleased to advise you that Substitute Senate Bill
5184 was never reported out of the Senate Committee on Labor &
Commerce during the Washington legislative session.
Patricia Louie
Associate Counsel