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Texas Vernon's Texas Civil Statutes - Article 581-14. Denial, Suspension Or Revocation Of Registration As Dealer, Agent, Investment Adviser, Or Investment Adviser Representative

Legal Research Home > Texas Lawyer > Vernon's Texas Civil Statutes > Texas Vernon's Texas Civil Statutes - Article 581-14. Denial, Suspension Or Revocation Of Registration As Dealer, Agent, Investment Adviser, Or Investment Adviser Representative

Art. 581-14. DENIAL, SUSPENSION OR REVOCATION OF 
REGISTRATION AS DEALER, AGENT, INVESTMENT ADVISER, OR INVESTMENT 
ADVISER REPRESENTATIVE.  A. The Commissioner may deny, revoke, or 
suspend a registration issued under this Act, place on probation a 
dealer, agent, investment adviser, or investment adviser 
representative whose registration has been suspended under this 
Act, or reprimand a person registered under this Act if the person:
	(1)  has been convicted of any felony;                                         
	(2)  has been convicted of any misdemeanor which directly 
relates to the person's securities-related duties and 
responsibilities;
	(3)  has engaged in any inequitable practice in the sale of 
securities or in rendering services as an investment adviser, or in 
any fraudulent business practice;
	(4)  is a dealer or investment adviser who is insolvent;                       
	(5)  meets one of the following criteria:                                      
	(a)  is a dealer who is selling or has sold securities in this 
state through an agent other than a registered agent;
	(b)  is an investment adviser who is engaging or has engaged 
in rendering services as an investment adviser in this state 
through a representative who is not registered to perform services 
for that investment adviser as required by this Act;
	(c)  is an agent who is selling or has sold securities in this 
state for a dealer, issuer or controlling person with knowledge 
that such dealer, issuer or controlling person has not complied 
with the provisions of this Act;  or
	(d)  is an investment adviser representative who is 
rendering or has rendered services as an investment adviser for an 
investment adviser in this state for whom the representative is not 
or was not registered to represent as required by this Act;
	(6)  has violated any of the provisions of this Act or a rule 
of the Board;  
	(7)  has made any material misrepresentation to the 
Commissioner or Board in connection with any information deemed 
necessary by the Commissioner or Board to determine a dealer's or 
investment adviser's financial responsibility or a 
dealer's,agent's, investment adviser's or investment adviser 
representative's business repute or qualifications, or has refused 
to furnish any such information requested by the Commissioner or 
Board;
	(8)  became registered as a dealer, agent, investment 
adviser, or investment adviser representative after August 23, 
1963, and has not complied with a condition imposed by the 
Commissioner under Section 13-D;
	(9)  is the subject of any of the following orders that are 
currently effective and were issued within the last five years:
	(a)  an order by the securities agency or administrator of 
any state, by the financial regulatory authority of a foreign 
country, or by the Securities and Exchange Commission, entered 
after notice and opportunity for hearing, denying, suspending, or 
revoking the person's license as a dealer, agent, investment 
adviser, or investment adviser representative or the substantial 
equivalent of those terms;
	(b)  a suspension or expulsion from membership in or 
association with a member of a self-regulatory organization;
	(c)  a United States Postal Service fraud order;                               
	(d)  an order by the securities agency or administrator of 
any state, the financial regulatory authority of a foreign country, 
the Securities and Exchange Commission, or by the Commodity Futures 
Trading Commission, finding, after notice and opportunity for 
hearing, that the person engaged in acts involving fraud, deceit, 
false statements or omissions, or wrongful taking of property;
	(e)  an order by the Commodity Futures Trading Commission 
denying, suspending, or revoking registration under the Commodity 
Exchange Act;
	(10)  is subject to any order, judgment, or decree entered by 
any court of competent jurisdiction which permanently restrains or 
enjoins such person from engaging in or continuing any conduct, 
action, or practice in connection with any aspect of the purchase or 
sale of securities or the rendering of security investment advice;  
or
	(11)  has violated any provision of any order issued by the 
Commissioner or has violated any provision of any undertaking or 
agreement with the Commissioner.
	B. If the Commissioner proposes to suspend or revoke a 
person's registration, the person is entitled to a hearing before 
the Commissioner or a hearings officer as now or hereafter required 
by law.  Proceedings for the suspension or revocation of a 
registration are governed by Chapter 2001, Government Code.
	C. This section does not affect the confidentiality of 
investigative records maintained by the Commissioner or Board.

Acts 1957, 55th Leg., p. 575, ch. 269, Sec. 14.  Amended by Acts 
1963, 58th Leg., p. 473, ch. 170, Sec. 10.

Amended by Acts 1983, 68th Leg., p. 2688, ch. 465, Sec. 1, eff. 
Sept. 1, 1983.  Subsec. A amended by Acts 1985, 69th Leg., ch. 578, 
Sec. 1, eff. June 12, 1985;  Subsecs. A, D amended by Acts 1995, 74th 
Leg., ch. 228, Sec. 9, eff. Sept. 1, 1995.  Amended by Acts 2001, 
77th Leg., ch. 1091, Sec. 3.02, eff. Sept. 1, 2001.

Last modified: August 10, 2007