Dealer And Investment Adviser Registration

State Securities Board personnel review all applications for the registration of dealers, agents, investment advisers, and investment adviser representatives to ensure that individuals and firms dealing with Texas investors meet certain minimum qualifications and are financially solvent. A background check is performed on every applicant for registration.

Individuals and firms offering or selling securities, or providing investment advice within the state for compensation, must be registered or notice-filed unless they meet the criteria for an exemption. Applicants must submit to an extensive background investigation, pass examinations on securities law and principles, and agree to comply with certain record-keeping and disclosure requirements.

The primary statutory requirements for the registration of dealers and investment advisers and their agents or representatives are found in Sections 12, 12-1, 13, 14, 18, 19, 35, and 41 of the Texas Securities Act.

Rules for the registration of dealers and investment advisers are found in Chapters 115 and 116 of the Board Rules. Section 115.1(c) provides several categories of restricted registration for dealers, each of which permits registrants to deal exclusively in a certain type of securities or transactions.

Once registered, each registrant is required to timely amend its information when an event occurs that causes an answer to a question on its application to become incorrect.

All registrations for dealers, investment advisers, and their agents or representatives expire at the end of each calendar year and must be renewed timely for the registrant to remain registered to do business in Texas.

The State Securities Board participates in the Central Registration Depository (CRD) system for the registration of securities dealers and agents. The registrations of investment advisers are processed through the Investment Adviser Registration Depository (IARD) system. The registration of investment adviser representatives are processed through the CRD system. These online systems enable dealers and investment advisers to register themselves and their agents and representatives in all desired states via a single electronic platform. Registration and renewal fees collected through CRD and IARD are transferred electronically to the State.