What are the regulations governing the sale of securities?

In Washington, the sale of securities is regulated by the Washington Securities Act. This law requires that all securities sales or transactions must be fair and conducted in compliance with securities laws. It also requires any person, firm, or corporation that wishes to offer or sell securities to register with the Washington State Department of Financial Institutions. The registration process includes having all relevant information about the issuer, the securities being offered (such as their terms and risks), and the individuals or entities selling them certified by the Department. Additionally, the Washington Securities Act regulates the activities of stockbrokers and other securities dealers and ensures investors are provided important information regarding the risk and features of their investments. Brokers and dealers must provide customers with a prospectus, which explains the terms and risks of the security being offered, and any other material information necessary for the investor to make an informed decision. Lastly, the Washington Securities Act also requires the registration of investment advisors who provide services for a fee. Investment advisors must provide their clients with a Form ADV (Adviser’s Disclosure Document) which explains their services, fees, and other material information. The Washington Securities Act was created to protect investors from fraud or misrepresentation and to ensure all securities transactions are conducted fairly.

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What are the regulations governing the sale of securities?

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