November 30, 1990
TO: STATE LIAISON COMMITTEE NO. 29-90
RE: TEXAS PROPOSES RULE EXCLUDING 144A SECURITIES FROM
INVESTMENT RESTRICTION
__________________________________________________________
We are pleased to inform you that the Texas State
Securities Board recently proposed for public comment an
amendment to Section 123.2 of the Texas Administrative Code
("TAC") that would exclude securities eligible for resale
pursuant to Rule 144A of the Securities and Exchange Commission
from the current 15% investment limitation in restricted
securities.
The State Securities Board has also proposed Section 139.4
of the TAC to create a new exemption for resales of securities
sold in compliance with Rule 144A of the SEC provided that the
person acting as agent on behalf of the seller is registered as
required by the Texas Securities Act.
In addition, the State Securities Board amended Section
123.1 of the TAC to clarify the dealer registration requirements
for mutual funds. All mutual fund shares must be registered and
sold through a registered broker-dealer, which may be the issuer
itself and includes no-load mutual fund issuers.
A copy of the proposed rules are attached. Please submit
any comments that you have on the proposed rules to me by
December 15, 1990 so that such may be included in the Institute's
comment letter. Individual comment letters should be submitted
to Denise Voigt Crawford, General Counsel, Texas State Securities
Board, P.O. Box 13167, Austin, Texas 78711-3167 by December 21,
1990. The proposed rules will be considered by the State
Securities Board on January 22, 1991.
* * *
We will keep you advised of further developments.
Patricia Louie
Assistant General Counsel
Attachment