(a) Requirement.
(1) To determine the applicant's qualifications and
competency to engage in the business of dealing in and selling securities,
the State Securities Board requires a written examination on general
securities principles and on state securities law. Applicants must
make a passing score, as determined by the North American Securities
Administrators Association, FINRA, or the Securities Commissioner,
as appropriate, on any required examination.
(2) If, at the time the applicant completes the examinations
required in subsection (b) of this section, the Securities Industry
Essentials (SIE) examination is coupled with the FINRA general or
specialized knowledge examination for the registration category sought,
the applicant must obtain a passing score on the SIE examination.
(b) Examinations accepted.
(1) Each applicant must pass an examination on general
securities principles. This requirement is satisfied by passing the
examination on general securities principles administered by FINRA.
As set forth in paragraph (3) of this subsection, applicants for restricted
registrations may substitute a specialized knowledge examination dealing
with a particular type of security for an examination on general securities
principles.
(2) The Securities Commissioner recognizes the general
examinations administered by FINRA as an examination on general securities
principles sufficient to meet that requirement in paragraph (1) of
this subsection.
(3) In lieu of an examination on general securities
principles, an applicant may substitute one or more specialized knowledge
examination(s) administered by FINRA. The Securities Commissioner
also recognizes the specialized knowledge examinations administered
by FINRA as restricted registration categories. The registration of
an applicant passing a specialized knowledge examination is restricted
and effective only for conducting the business and securities activities
and effecting transactions associated with the specialized examination.
(4) Each applicant must pass an examination on state
securities law. This requirement may be satisfied by passing an examination
on the Texas Securities Act administered by this Agency or by passing
the Uniform Securities Agent State Law Examination (Series 63) or
the Uniform Combined State Law Examination (Series 66).
(c) Waivers of examination requirements.
(1) All persons who were registered in Texas on August
23, 1963, are not required to take any examinations.
(2) A full waiver of the examination requirements of
the Texas Securities Act, §13.D, is granted by the Board to the
following classes of persons:
(A) issuers offering securities in rights offerings
to their own securities holders;
(B) issuers offering their own securities in exchange
for outstanding securities of another corporation, provided consummation
of the offer is dependent upon tender of at least 80% of such outstanding
securities;
(C) issuers restricting distribution of securities
to security holders of an affiliate company, a subsidiary, or a parent
of the issuer, provided the registration certificate is issued on
a temporary basis and terminated immediately after the offering;
(D) officers and employees whose firms restrict their
officers' and employees' securities activities to acting as brokers
between and among principals for the sale of a majority of the stock
or equity securities of a privately held business pursuant to a privately
negotiated purchase agreement, where the managerial control of the
business will devolve upon the purchaser(s) and where compensation
received by the firm will be payable for the brokerage activities
only;
(E) a finder;
(F) a person who completed the required examinations,
but whose registration has lapsed for more than two years and who
has been continually employed in a securities-related position with
an entity which was not required to be registered;
(G) a person who completed the required examinations
and whose registration with FINRA and with another state securities
regulator has not lapsed for more than two years; and
(H) a Texas crowdfunding portal and its agents.
(3) A partial waiver of the examination requirements
of the Texas Securities Act, §13.D, is granted by the Board to
the following classes of persons:
(A) applicants who have been continuously registered
with the Securities and Exchange Commission, FINRA, or any other exchange
listed in the Act, §6.F, or recognized by the Board pursuant
to §111.2 of this title (relating to Listed and Designated Securities)
for 10 years immediately preceding the application for registration
in Texas. These applicants are required to pass an examination on
state securities law as required by subsection (b)(4) of this section;
(B) applicants who passed the "state securities examination"
promulgated and formerly administered by the Psychological Corporation,
New York, New York, and later by the Psychological Corporation, San
Antonio, Texas, which was an examination on general securities principles.
These applicants are required to pass an examination on state securities
law as required by subsection (b)(4) of this section;
(C) applicants seeking registration for the purpose
of dealing exclusively in real estate syndication interests or condominium
securities, provided such persons are licensed, at the time of application,
under The Real Estate License Act (Texas Occupations Code, Chapter
1101). Such persons are not required to take a general securities
examination, but are required to pass an examination on state securities
law as required by subsection (b)(4) of this section;
(D) applicants seeking registration for the purpose
of dealing exclusively in oil and gas interests (other than interests
in limited partnerships). Such persons are not required to take the
general securities examination, but are required to pass an examination
on state securities law as required by subsection (b)(4) of this section.
Provided, however, any persons registered prior to January 1, 1976,
for the purpose of dealing exclusively in oil and gas interests, are
not required to pass an examination; and
(E) applicants who are officers, partners, or employees
of an issuer (other than an open-end investment company) if the issuer's
securities will be registered for sale in Texas. Such officers, partners,
and employees are not required to take the general securities examination,
but are required to pass an examination on state securities law as
required by subsection (b)(4) of this section. Evidences of registration
granted pursuant to this subparagraph are restricted to sales of the
currently registered securities of the issuer.
(4) The Securities Commissioner in his or her discretion
is authorized by the Board to grant full or partial waivers of the
examination requirements of the Texas Securities Act, §13.D.
(d) Texas securities law examination.
(1) The fee for each filing of a request to take the
Texas securities law examination is $35. An admission letter issued
by the Board is required for all entrants. The examination is given
at 9:00 a.m. on each Tuesday at the office of the State Securities
Board in Austin. The examination may be taken at other locations near
principal population centers across the state. Testing centers require
reservations and may charge an additional (monitor) fee for administering
the examination. A list of examination centers with additional details
may be obtained from the State Securities Board.
(2) While taking the examination on the Texas Securities
Act, each applicant may use an unmarked copy of the Texas Securities
Act as it is printed and distributed by the State Securities Board.
No other reference materials are allowed to be used by applicants
during the examination.
(3) Reexamination. An applicant who fails the examination
on the Texas Securities Act may request reexamination. The applicant
must bring his or her application up to date before retaking an examination.
(4) Disability accommodations. The Texas securities
law examination shall be administered to applicants with disabilities
in compliance with the Americans with Disabilities Act of 1990, as
amended ("ADA").
(A) Any applicant with a disability who wishes to request
disability accommodations must submit to the Securities Commissioner
a Form 133.3, ADA Accommodations Request Form, that has been completed
and signed by the applicant and includes supporting documentation
from a licensed or certified health professional appropriate for diagnosing
and treating the disability, at least 60 days prior to the examination.
A prior history of receiving disability accommodations, without demonstration
of a current need, will not necessarily warrant approval of disability
accommodations.
(B) The Securities Commissioner may request additional
documentation to substantiate a request for disability accommodations.
(C) Documentation shall not be older than three years
from the date of submission.
(D) All medical records provided to the Securities
Commissioner are confidential under the Health Insurance Portability
and Accountability Act ("HIPAA").
(E) The Securities Commissioner is not required to
approve every request for disability accommodations or to provide
every accommodation or service requested. The Securities Commissioner
is not required to grant a request for disability accommodations if
doing so would fundamentally alter the measurement of knowledge or
the measurement of skill intended to be tested by the Texas securities
law examination, would affect the security of the examination, or
would create an undue financial or administrative burden.
(F) Once disability accommodations have been granted,
they may not be altered during the examination unless prior approval
of the Securities Commissioner is obtained.
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Source Note: The provisions of this §115.3 adopted to be effective August 12, 2001, 26 TexReg 5794; amended to be effective November 26, 2001, 26 TexReg 9581; amended to be effective July 14, 2005, 30 TexReg 3988; amended to be effective September 1, 2006, 31 TexReg 6712; amended to be effective February 21, 2008, 33 TexReg 1319; amended to be effective August 16, 2010, 35 TexReg 7050; amended to be effective December 21, 2011, 36 TexReg 8505; amended to be effective June 19, 2013, 38 TexReg 3780, amended to be effective November 17, 2014, 39 TexReg 8961; amended to be effective December 23, 2018, 43 TexReg 8089 |