HOUSE OF REPRESENTATIVES	H.B. NO.	1743
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to regulation by the department of commerce and consumer affairs.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  Section 431:10D-622, Hawaii Revised Statutes, is amended by amending the definition of "comparable standards" to read as follows:

     ""Comparable standards" means:

     (1)  With respect to broker-dealers and registered representatives of broker-dealers, applicable United States Securities and Exchange Commission and Financial Industry Regulatory Authority rules pertaining to best interest obligations and supervision of annuity recommendations and sales, including but not limited to Regulation Best Interest, title 17 Code of Federal Regulations section 240.15l‑1, and any amendments or successor regulations thereto; provided that if a broker-dealer or registered representatives of a broker-dealer is subject to a more restrictive standard than required by the Regulation Best Interest, the more restrictive standard shall apply;

     (2)  With respect to investment advisers registered under federal or state securities laws or investment adviser representatives, the fiduciary duties and all other requirements imposed on the investment advisers or investment adviser representatives by contract or under the Rules and Regulations, Investment Company Act of 1940, title 17 Code of Federal Regulations part 270, or applicable state securities law, including but not limited to the Form ADV and interpretations; and

     (3)  With respect to fiduciaries or plan fiduciaries, the duties, obligations, prohibitions, and all other requirements attendant to [such] that status under the Employee Retirement Income Security Act of 1974, P.L. 93-406, or the Internal Revenue Code of 1986, as amended, and any amendments or successor statutes thereto."

     SECTION 2.  Section 485A-411, Hawaii Revised Statutes, is amended by amending subsection (i) to read as follows:

     "(i)  A rule adopted or order issued under this chapter may require an individual registered under sections 485A-402 or 485A-404 to participate in a continuing education program approved by the Securities and Exchange Commission and administered by a self-regulatory organization or, in the absence of such a program, a rule adopted or order issued under this chapter may require continuing education for an individual registered under section 485A-404[.]; provided that up to twelve hours of annual continuing education completed during a year to satisfy another licensing requirement administered by the department may be used to satisfy the annual continuing education requirement under this subsection for the same year."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2024.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

DCCA; Broker-dealer; Regulation Best Interest; Continuing Education; Investment Advisor Representatives

 

Description:

Requires that if a broker-dealer is subject to a more restrictive standard than under the federal Regulation Best Interest standard, the more restrictive standard shall apply.  Allows certain investment advisor representatives to use other continuing education hours to satisfy continuing education requirements.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is ot legislation or evidence of legislative intent.