Part 7.
STATE SECURITIES BOARD
Chapter 115.
SECURITIES DEALERS AND AGENTS
7 TAC §115.1
The Texas State Securities Board proposes an amendment to §115.1,
concerning securities dealers and agents. The proposed amendment would define
the term "finder" and provide for a restricted registration to act solely
in that capacity. An individual engaged only in the limited activity specified
must apply for restricted registration as a finder. Persons registered as
general securities dealers are permitted to engage in finder activities under
their general dealer license.
Micheal Northcutt, Director, Registration Division, and Benette Zivley,
Director, Inspections and Compliance Division, have determined that for the
first five-year period the amendment is in effect there will be no foreseeable
fiscal implications for state or local government as a result of enforcing
or administering the amended rule.
Mr. Northcutt and Mr. Zivley also have determined that for each year of
the first five years the amendment is in effect the public benefit anticipated
as a result of enforcing the amended rule will be to explicitly inform persons
operating as finders that registration is required and to provide a special
category of restricted dealer registration for individuals engaged in this
limited activity. There will be no effect on micro- or small businesses. There
is no anticipated economic cost to persons who are required to comply with
the amendment as proposed. There is no anticipated impact on local employment.
Comments on the proposal to be considered by the Board should be submitted
in writing within 30 days after publication of the proposed amendment in the
Statutory authority: 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.
Cross-reference to Statute: Texas Civil Statutes, Article 581-12.
Statutes and codes affected: Texas Civil Statutes, Article 581-12.
§115.1.General Provisions.
(a)
Definitions. Words and terms used in this chapter are also
defined in §107.2 of this title (relating to Definitions). The following
words and terms, when used in this chapter, shall have the following meanings,
unless the context clearly indicates otherwise.
(1) - (8)
(No change.)
(9)
Finder--An individual who receives compensation
for introducing an accredited investor to an issuer or an issuer to an accredited
investor solely for the purpose of a potential investment in the securities
of the issuer, but does not participate in negotiating any of the terms of
an investment and does not give advice to any such parties regarding the advantages
or disadvantages of entering into an investment, and conducts this activity
in accordance with §115.11 of this title (relating to Activities of
a Finder). Note that a finder is not permitted to register in any capacity
other than as a restricted dealer.
(b)
(No change.)
(c)
Types of registrations.
(1)
(No change.)
(2)
Restricted registration. The restricted registrations are
as follows:
(A) - (K)
(No change.)
(L)
registration to deal in all general securities except municipal
securities; [
(M)
registration to act exclusively as a finder;
and
(N)
[
(3)
(No change.)
(d)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on March 13, 2006.
TRD-200601591
Denise Voigt Crawford
Securities Commissioner
State Securities Board
Earliest possible date of adoption: April 30, 2006
For further information, please call: (512) 305-8303
and
]
(M)
] registration with other restrictions
which the Securities Commissioner may impose based upon the facts.