Texas Administrative Code
Title 7 - BANKING AND SECURITIES
Part 7 - STATE SECURITIES BOARD
Chapter 139 - EXEMPTIONS BY RULE OR ORDER
Section 139.22 - Exemption for Investment Adviser to a High Net Worth Family Entity

Universal Citation: 7 TX Admin Code ยง 139.22

Current through Reg. 49, No. 38; September 20, 2024

(a) The State Securities Board, pursuant to the Texas Securities Act, §5.T and §12.C, exempts an investment adviser and its investment adviser representatives from the registration requirements of the Act, §12, when such adviser:

(1) renders services as an investment adviser to a high net worth family entity or related family entities, and

(2) does not hold itself out to the public as one who renders services as an investment adviser.

(b) For purposes of this section, a "high net worth family entity" is a corporation, limited partnership, limited liability company, or other entity, with all of its owners, partners, or members belonging to a single family who are all related by blood, adoption or marriage; with a combined net worth of not less than $5 million; and with ownership by an individual family member being direct or indirect pursuant to a trust or other similar arrangement where the investment is made by or on behalf of, or for the benefit of, the individual. An individual shall not constitute a "family entity" for purposes of this exemption regardless of the net worth of the individual.

(c) For purposes of determining "net worth" under this section, an investment adviser may rely on the entity's most recent annual balance sheet or other financial statement which shall have been audited by an independent accountant or which shall have been verified under oath by a principal of the entity.

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