Adopted Rules

TITLE 7.BANKING AND SECURITIES

Part 7. STATE SECURITIES BOARD
Chapter 115. SECURITIES DEALERS AND AGENTS

7 TAC 115.1

The State Securities Board adopts an amendment to 115.1, concerning general provisions, without changes to the proposed text as published in the June 8, 2012, issue of the Texas Register (37 TexReg 4116).

A change to the title of 115.11, which is concurrently adopted, is reflected in the rule.

A cross-reference in the rule is updated.

No comments were received regarding adoption of the amendment.

The amendment is adopted under Texas Civil Statutes, Article 581-28-1. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Texas Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes.

The adopted amendment affects Texas Civil Statutes, Article 581-12.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 19, 2012.

TRD-201205426

John Morgan
Securities Commissioner
State Securities Board

Effective date: November 8, 2012

Proposal publication date: June 8, 2012

For further information, please call: (512) 305-8304


7 TAC 115.4

The State Securities Board adopts an amendment to 115.4, concerning evidences of registration, without changes to the proposed text as published in the June 8, 2012, issue of the Texas Register (37 TexReg 4116).

The process for certain succession filings by a registered securities dealer has been streamlined and coordinates with the treatment of these succession filings (as a succession by application or as a succession by amendment) at the federal level; the fees to be paid for each type of succession are clarified; and the renewal filing requirements are updated.

Uniformity is promoted by more closely mirroring the treatment of succession filings by the Securities and Exchange Commission and the Financial Industry Regulatory Authority.

No comments were received regarding adoption of the amendment.

The amendment is adopted under Texas Civil Statutes, Article 581-28-1. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Texas Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes.

The adopted amendment affects Texas Civil Statutes, Articles 581-12, 581-13, 581-15, 581-17, and 581-19.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 19, 2012.

TRD-201205427

John Morgan
Securities Commissioner
State Securities Board

Effective date: November 8, 2012

Proposal publication date: June 8, 2012

For further information, please call: (512) 305-8304


7 TAC 115.11

The State Securities Board adopts an amendment to 115.11, concerning finder registration and activities, without changes to the proposed text as published in the June 8, 2012, issue of the Texas Register (37 TexReg 4118).

Finder applicants will be able to more easily identify those portions of Form BD and Form U-4 that are applicable to their finder activities and will no longer be required to provide a personal balance sheet with their application. Registered finders will be required to maintain a copy of both the Form BD and the Form U-4 used to register as well as any amendments thereto.

Finder applicants will be provided specific guidance on the registration filing requirements, and recordkeeping required of registered finders will correspond to their filing requirements.

No comments were received regarding adoption of the amendment.

The amendment is adopted under Texas Civil Statutes, Article 581-28-1. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Texas Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes.

The adopted amendment affects Texas Civil Statutes, Articles 581-12, 581-13, and 581-13-1.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 19, 2012.

TRD-201205428

John Morgan
Securities Commissioner
State Securities Board

Effective date: November 8, 2012

Proposal publication date: June 8, 2012

For further information, please call: (512) 305-8304


Chapter 116. INVESTMENT ADVISERS AND INVESTMENT ADVISER REPRESENTATIVES

7 TAC 116.4

The State Securities Board adopts an amendment to 116.4, concerning evidences of registration, without changes to the proposed text as published in the June 8, 2012, issue of the Texas Register (37 TexReg 4119).

The process for certain succession filings of a registered investment adviser has been streamlined and coordinates with the treatment of these succession filings (as a succession by application or as a succession by amendment) at the federal level; the fees to be paid for each type of succession are clarified; and the renewal and termination filing requirements are updated.

Uniformity is promoted by more closely mirroring the treatment of succession filings at the federal level and guidance is provided on submission of renewal and termination notices.

No comments were received regarding adoption of the amendment.

The amendment is adopted under Texas Civil Statutes, Articles 581-28-1 and 581-12-1.B. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Texas Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes. Section 12-1.B provides the Board with authority to make rules authorizing a federal covered investment adviser or a representative of a federal covered investment adviser to engage in rendering services as an investment adviser in this state on submission to and receipt by the Commissioner of a notice filing, a consent to service of process, and fee.

The adopted amendment affects Texas Civil Statutes, Articles 581-12, 581-12-1, 581-13, 581-15, 581-17, and 581-19.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 19, 2012.

TRD-201205429

John Morgan
Securities Commissioner
State Securities Board

Effective date: November 8, 2012

Proposal publication date: June 8, 2012

For further information, please call: (512) 305-8304


Chapter 139. EXEMPTIONS BY RULE OR ORDER

7 TAC 139.16

The State Securities Board adopts an amendment to 139.16, concerning sales to individual accredited investors, without changes to the proposed text as published in the June 8, 2012, issue of the Texas Register (37 TexReg 4121).

The limited use advertisement that can be used by issuers utilizing this exemption has been updated to reflect changes made to the definition of an accredited investor by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

The limited use advertisement authorized by the section correctly identifies the net worth criteria for natural person accredited investors.

No comments were received regarding adoption of the amendment.

The amendment is adopted under Texas Civil Statutes, Articles 5.T and 581-28-1. Section 5.T provides that the Board may prescribe new exemptions by rule. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Texas Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes.

The adopted amendment affects Texas Civil Statutes, Article 581-7.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 19, 2012.

TRD-201205430

John Morgan
Securities Commissioner
State Securities Board

Effective date: November 8, 2012

Proposal publication date: June 8, 2012

For further information, please call: (512) 305-8304