Texas Administrative Code
Title 7 - BANKING AND SECURITIES
Part 7 - STATE SECURITIES BOARD
Chapter 116 - INVESTMENT ADVISERS AND INVESTMENT ADVISER REPRESENTATIVES
Section 116.4 - Evidences of Registration
Universal Citation: 7 TX Admin Code ยง 116.4
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 investment adviser 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 an investment adviser, the successor
entity must file a new application, including the fees, as required in §
RSA
116.2 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 thirty (30) days after succession, so the
application can be reviewed and approved prior to the successor entity taking
over the business of the predecessor investment adviser. If a successor entity
has taken over the business of a predecessor investment adviser 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 investment adviser
and all its investment adviser representatives on the expiration of the 60-day
temporary registration. Any investment advisory services rendered by the
investment adviser and/or its investment adviser representatives after
termination of the temporary registration are subject to the sanctions provided
by the Texas Securities Act for rendering investment advice while
unregistered.
(C) Upon registration
of the successor entity, the registration of the predecessor investment adviser
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 investment
adviser, 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 successions by
amendment.
(3) All
procedures set forth in this subsection shall also apply to investment advisers
and investment adviser representatives who have submitted a notice filing and
fee to the Securities Commissioner.
(d) Termination. An investment adviser is required to notify the Securities Commissioner upon termination of any registered investment adviser representative from its employ. Upon receipt of such notification, the Securities Commissioner may terminate the registration. Investment advisers must file a Form U-5, Uniform Termination Notice for Securities Industry Registration, through the IARD 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
and §12-1.C.
(2) A notice of
impending expiration of registration (renewal application) will be sent by IARD
to a currently registered investment adviser. The renewal application should be
filed through IARD, 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
116.18(a) of this chapter
(relating to Special Provisions Relating to Military Applicants), such person
may renew the registration pursuant to the provisions of
§116.18(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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