Current through Register Vol. 24-06, March 15, 2024
(1)
Designation. Pursuant to
RCW
21.20.050, the director designates the
Investment Adviser Registration Depository (IARD) and the Central Registration
Depository (CRD) operated by Financial Industry Regulatory Authority (FINRA) to
receive and store filings and collect related fees from investment advisers,
federal covered advisers, and investment adviser representatives on behalf of
the director.
(2) Use of IARD and
CRD. Unless otherwise provided, all investment adviser, federal covered
adviser, and investment adviser representative applications, amendments,
reports, notices, related filings, and fees required to be filed with the
director pursuant to the rules promulgated under this chapter, must be filed
electronically with and transmitted to IARD or CRD. The following additional
conditions relate to such electronic filings:
(a) Electronic signature. When a signature or
signatures are required by the particular instructions of any filing to be made
through IARD or CRD, a duly authorized officer of the applicant or the
applicant him or herself, as required, must affix his or her electronic
signature to the filing by typing his or her name in the appropriate fields and
submitting the filing to IARD or CRD. Submission of a filing in this manner
will constitute irrefutable evidence of legal signature by any individuals
whose names are typed on the filing.
(b) When filed. Solely for purposes of a
filing made through IARD or CRD, a document is considered filed with the
director when all fees are received and the filing is accepted by IARD or CRD
on behalf of the state.
(3) Electronic filing. Notwithstanding
subsection (2) of this section, you are not required to file any particular
document or pay processing fees using the IARD or CRD system until such time as
IARD or CRD provides for receipt of such filings and fees and thirty days'
notice is provided by the director. Any documents or fees required to be filed
with the director that are not permitted to be filed with or cannot be accepted
electronically by IARD or CRD must be filed directly with the director. The
director may establish a proprietary online filing system for the purpose of
accepting such filings electronically.
(4) Hardship exemptions. Notwithstanding
subsection (2) of this section, electronic filing is not required under the
following circumstances:
(a) Temporary
hardship exemption.
(i) Investment advisers
registered or required to be registered under
RCW
21.20.040, who experience unanticipated
technical difficulties that prevent submission of an electronic filing to IARD
or CRD, may request a temporary hardship exemption from the requirements to
file electronically.
(ii) To
request a temporary hardship exemption, the investment adviser must:
(A) File Form ADV-H in paper format with the
appropriate regulatory authority in the state where the investment adviser's
principal place of business is located, no later than one business day after
the filing, that is the subject of the Form ADV-H, was due. If the state where
the investment adviser's principal place of business is located has not
mandated the use of IARD or CRD, the investment adviser should file the Form
ADV-H with the appropriate regulatory authority in the first state that
mandates the use of IARD or CRD by the investment adviser; and
(B) Submit the filing that is the subject of
the Form ADV-H in electronic format to IARD or CRD no later than seven business
days after the filing was due.
(iii) Effective date - Upon filing. The
temporary hardship exemption will be deemed effective by the director upon
receipt of the complete Form ADV-H by appropriate regulatory authority noted in
(a)(ii)(A) of this subsection. Multiple temporary hardship exemption requests
within the same calendar year may be disallowed by the
director.
(b) Continuing
hardship exemption.
(i) Criteria for
exemption. A continuing hardship exemption will be granted only if the
investment adviser is able to demonstrate that the electronic filing
requirements of this section are prohibitively burdensome.
(ii) To apply for a continuing hardship
exemption, the investment adviser must:
(A)
File Form ADV-H in paper format with the director at least twenty business days
before a filing is due; and
(B) If
a filing is due to more than one state, the Form ADV-H must be filed with the
appropriate regulatory authority in the state where the investment adviser's
principal place of business is located. If the state where the investment
adviser's principal place of business is located has not mandated the use of
IARD or CRD, the investment adviser should file the Form ADV-H with the
appropriate regulatory authority in the first state that mandates the use of
IARD or CRD by the investment adviser. Any applications received by the
director will be granted or denied within ten business days after the filing of
Form ADV-H.
(iii)
Effective date - Upon approval. The exemption is effective upon approval by the
director. The time period of the exemption may be no longer than one year after
the date on which the Form ADV-H is filed. If the director approves the
application, the investment adviser must, no later than five business days
after the exemption approval date, submit filings in paper format (along with
the appropriate processing fees) for the period of time for which the exemption
is granted.
(c)
Recognition of exemption. The decision to grant or deny a request for a
hardship exemption will be made by the appropriate regulatory authority in the
state where the investment adviser's principal place of business is located. If
the state where the investment adviser's principal place of business is located
has not mandated the use of IARD or CRD, the decision to grant or deny a
request for a hardship exemption will be made by appropriate regulatory
authority in the first state that mandates the use of IARD or CRD by the
investment adviser. The decision will be followed by the director if the
investment adviser is registered in this state.
Statutory Authority:
RCW
21.20.450,
21.20.050,
21.20.100. 01-16-125, §
460-24A-047, filed 7/31/01,
effective 10/24/01.