November 8, 1994
TO: INVESTMENT ADVISERS COMMITTEE NO. 55-94
STATE LIAISON COMMITTEE NO. 62-94
UNIT INVESTMENT TRUST COMMITTEE NO. 71-94
RE: TEXAS ISSUES REVISED LEGISLATIVE RECOMMENDATIONS FOR 1995
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As we previously informed you, earlier this year the Texas
State Securities Board (the "Board") issued for comment proposed
revisions to the Texas Securities Act that the Board would like
to have considered during the 1995 legislative session. (See
Memorandum to Investment Advisers Committee No. 34-94, State
Liaison Committee No. 32-94, and Unit Investment Trust Committee
No. 35-94, dated May 13, 1994.) The Board's proposal included
provisions that would subject investment advisers to civil
liability for specified conduct and authorize the Board to impose
administrative fines for violations of the Act.
In June, the Institute filed a comment letter that generally
supported the proposed revisions except for those relating to an
investment adviser's civil liability. (See Memorandum to
Investment Advisers Committee No. 39-94, State Liaison Committee
No. 39-94, and Unit Investment Trust Committee No. 44-94, dated
June 24, 1994.)
We are pleased to inform you that the Board recently issued
a revised version of its legislative proposals, which deletes the
investment adviser liability provisions. In addition to this
deletion, the Board has amended the administrative fine provision
to add a maximum aggregate fine amount that may be imposed (i.e.,
$100,000 for multiple violations in a single proceeding or a
series or related proceedings). Finally, the provision in the
previous proposal that would have clarified the Act with respect
to the sale of excess securities has been deleted from the
revised proposal to give the staff additional time to ensure the
feasibility of its implementation.
A copy of the Board's revised legislative proposal for the
1995 legislative session is attached.
Tamara K. Cain
Assistant Counsel
Attachment