Texas Administrative Code
Title 7 - BANKING AND SECURITIES
Part 7 - STATE SECURITIES BOARD
Chapter 115 - SECURITIES DEALERS AND AGENTS
Section 115.4 - Evidences of Registration
Universal Citation: 7 TX Admin Code ยง 115.4
Current through Reg. 49, No. 38; September 20, 2024
(a) Issuance. An evidence of registration or certificate of registration shall be issued for each registered securities dealer reflecting the registered officer or partner.
(b) Amendments. Any changes in the information reflected on the evidence of registration must be submitted to the Securities Commissioner within 30 days of such change. An amendment fee, in the amount set forth in the Texas Securities Act, §35, is required to amend the evidence of registration.
(c) Successions.
(1) Succession by application.
(A) If a succession results in a surviving
entity that is not currently registered as a securities dealer, the successor
entity must file a new application, including the fees, as required in §
RSA
115.2 of this title (relating to Application
Requirements). Such a succession may include, but is not limited to, any of the
following that results in either a change in control of the beneficial owners,
or a change in management:
(i) a
merger;
(ii) a
consolidation;
(iii) an
acquisition; or
(iv) a
reorganization.
(B) A
complete application for the successor entity should be filed far enough in
advance, but no later than 30 days after succession, so the application can be
reviewed and approved prior to the successor entity taking over the business of
the predecessor securities dealer. If a successor entity has taken over the
business of a predecessor securities dealer before the application of the
successor entity has been reviewed and approved, the registration of the
successor entity will be automatically granted a temporary registration for 60
days from the date of succession to complete the registration for the new
entity. If the successor entity fails to complete the registration requirements
within the 60-day temporary registration period, it may submit a written
request to the Securities Commissioner to grant an extension of the temporary
registration for up to 30 additional days. If the Commissioner, in the exercise
of his or her discretion, declines to grant the extension request, the
registration will terminate for the dealer and all its agents on the expiration
of the 60-day temporary registration. Any sales by the dealer and/or its agents
after termination of the temporary registration are subject to the sanctions
provided by the Texas Securities Act for selling securities while
unregistered.
(C) Upon registration
of the successor entity, the registration of the predecessor securities dealer
will be terminated.
(2)
Succession by amendment.
(A) When a
succession does not result in a change in control of the beneficial owners or
management, or does not result in any acquisition or assumption of
substantially all of the assets and liabilities of the predecessor securities
dealer, the successor entity may file an amendment in lieu of filing a new
application. Such a succession may include, but is not limited to, any of the
following:
(i) an internal corporate
reorganization or restructuring;
(ii) a conversion;
(iii) a change in the form of business;
or
(iv) a change in the composition
of a partnership that does not result in change of control of the
partnership.
(B) The
provisions in subsection (b) of this section apply to a succession by
amendment.
(d) Termination. A securities dealer is required to notify the Securities Commissioner upon termination of any registered agent from its employ. Upon receipt of such notification, the Commissioner may terminate the registration. Dealers who are members of FINRA must file a Form U-5, Uniform Termination Notice for Securities Industry Registration, through the CRD to comply with this subsection.
(e) Renewal.
(1) Procedures for renewing expired and
unexpired registrations are set forth in the Texas Securities Act,
§19.C.
(2) A notice of
impending expiration of registration (renewal application) will be sent to a
currently registered dealer. Members of FINRA shall file the renewal
application electronically through the CRD. For non-FINRA member firms, the
renewal application should be returned to the State Securities Board for
processing, along with the appropriate fee.
(3) If a person's registration is not renewed
in a timely manner because such person is a military service member, as defined
in §
RSA
115.18(a) of this chapter
(relating to Special Provisions Relating to Military Applicants), such person
may renew the registration pursuant to the provisions of
§115.18(e).
Disclaimer: These regulations may not be the most recent version. Texas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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