TITLE 7.BANKING AND SECURITIES

Part 7. STATE SECURITIES BOARD

Chapter 115. SECURITIES DEALERS AND AGENTS

7 TAC §115.2

The State Securities Board adopts an amendment to §115.2, concerning application requirements, without changes to the proposed text as published in the December 14, 2001, issue of the Texas Register (26 TexReg 10197).

The amendment eliminates a reference to a form that is being concurrently repealed and corrects a cross-reference.

The amendment eliminates an unnecessary filing requirement.

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.

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 February 14, 2002.

TRD-200200934

Denise Voigt Crawford

Securities Commissioner

State Securities Board

Effective date: March 6, 2002

Proposal publication date: December 14, 2001

For further information, please call: (512) 305-8300


Chapter 116. INVESTMENT ADVISERS AND INVESTMENT ADVISER REPRESENTATIVES

7 TAC §116.1, §116.2

The State Securities Board adopts amendments to §116.1 and §116.2, concerning investment advisers and investment adviser representatives, without changes to the proposed text as published in the December 14, 2001, issue of the Texas Register (26 TexReg 10198).

The amendments conform definitions of terms used in Chapter 116 to those added to the Texas Securities Act by House Bill 2255, eliminate a reference to a form that is being concurrently repealed, and correct a cross-reference.

The amendments use terminology consistently and eliminate an unnecessary filing requirement.

A comment on the proposal was received from the Investment Company Institute. The commenter suggested that federal covered investment advisers be excluded from the definition of "investment adviser" in §116.1. The staff disagreed and explained that it is a matter of interpretation, adding that the proposed definition tracks the definition recently added to the Texas Securities Act by the Texas Legislature. The Board adopted the rule as proposed.

The amendments are 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.

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 February 14, 2002.

TRD-200200935

Denise Voigt Crawford

Securities Commissioner

State Securities Board

Effective date: March 6, 2002

Proposal publication date: December 14, 2001

For further information, please call: (512) 305-8300


Chapter 133. FORMS

7 TAC §133.23

The State Securities Board adopts the repeal of §133.23, a form concerning franchise tax certification for corporate applicants, without changes to the proposed text as published in the December 14, 2001, issue of the Texas Register (26 TexReg 10199).

The amendment eliminates a form that is no longer required. Article 2.45 of the Texas Business Corporation Act, which required the agency to obtain a representation concerning franchise taxes, was repealed during the recent legislative session by House Bill 2914.

The amendment eliminates an unnecessary form.

No comments were received regarding adoption of the repeal.

The repeal 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.

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 February 14, 2002.

TRD-200200936

Denise Voigt Crawford

Securities Commissioner

State Securities Board

Effective date: March 6, 2002

Proposal publication date: December 14, 2001

For further information, please call: (512) 305-8300