Current through Reg. 49, No. 38; September 20, 2024
(a) Purpose. The
purpose of this section is to establish standards of conduct applicable to
financial advisors or service providers in accordance with Tex. Gov't Code
Chapters 2263, 2270, and 2252.
(b)
Definitions. The following words and terms, when used in this section, shall
have the following meanings, unless the context clearly indicates otherwise.
(1) Department--The Texas Department of
Housing and Community Affairs, (the "Department").
(2) Board--The Governing Board of the
Department.
(3) Financial advisor
or service provider--A person or business entity who acts as a financial
advisor, financial consultant, money or investment manager, or broker who:
(A) may reasonably be expected to receive,
directly or indirectly, more than $10,000 in compensation from the Department
during a fiscal year; or
(B)
renders important investment or funds management advice to the Department or a
member of the Board.
(c) Anti-Boycott Verification. Financial
advisors and service providers are required to comply with the requirements of
Tex. Gov't Code Chapter 2270, which requires a representation by each financial
advisor or service provider that their firm (including any wholly owned
subsidiary, majority-owned subsidiary, parent company, or affiliate):
(1) does not boycott Israel; and
(2) will not boycott Israel during the term
for which they provide services to the Department.
(d) Iran, Sudan and Foreign Terrorist
Organizations. Financial advisors and service providers are required to comply
with the requirements of Tex. Gov't Code Chapter 2252, which requires a
representation by each financial advisor or service provider that their firm
(including any wholly owned subsidiary, majority-owned subsidiary, parent
company, or affiliate) is not an entity listed by the Texas Comptroller of
Public Accounts under Tex. Gov't Code §
RSA 2252.153 or
§
RSA
2270.0201.
(e) Exemption from Disclosure of Interested
Parties. Financial advisors and service providers are required to comply with
the requirements of Tex. Gov't Code Chapter 2252. Financial advisors and
service providers that make a representation that their firm (including any
wholly owned subsidiary, majority-owned subsidiary, parent company, or
affiliate) is a publicly traded business entity are exempt from Tex. Gov't Code
§
RSA
2252.908.
(f) Disclosures and Statement.
(1) A financial advisor or service provider
shall disclose in writing to the Executive Director of the Department and to
the state auditor:
(A) any relationship the
financial advisor or service provider has with any party to a transaction with
the Department, other than a relationship necessary to the investment or funds
management services that the financial advisor or service provider performs for
the Department, if a reasonable person could expect the relationship to
diminish the financial advisor's or service provider's independence of judgment
in the performance of the person's responsibilities to the Department;
and
(B) all direct or indirect
pecuniary interests the financial advisor or service provider has in any party
to a transaction with the Department, if the transaction is connected with any
financial advice or service the financial advisor or service provider provides
to the Department or to a member of the Board in connection with the management
or investment of state funds.
(2) The financial advisor or service provider
shall disclose a relationship described by this subsection without regard to
whether the relationship is a direct, indirect, personal, private, commercial,
or business relationship.
(3) A
financial advisor or service provider shall file annually a statement with the
Executive Director of the Department and with the state auditor. The statement
must disclose each relationship and pecuniary interest described by this
subsection, or if no relationship or pecuniary interest described by that
subsection existed during the disclosure period, the statement must
affirmatively state that fact.
(4)
The annual statement must be filed not later than April 15 in the following
form. The statement must cover the reporting period of the previous calendar
year.
Attached Graphic
(5) The financial advisor or
service provider shall promptly file a new or amended statement with the
Executive Director of the Department and with the state auditor whenever there
is new information to report under this subsection.
(6) A contract under which a financial
advisor or service provider renders financial services or advice to the
Department or a member of the Board is voidable by the Department if the
financial advisor or service provider violates a standard of conduct adopted
under this section.
