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RULE §116.9Post-Registration Reporting Requirements

(a) Each person registered as an investment adviser shall report to the Securities Commissioner within 30 days after its entry against the registered person or an investment adviser representative thereof, the matters described in this subsection. Likewise, each person registered as an investment adviser representative shall report to the Commissioner within 30 days after its occurrence or entry against the investment adviser representative the matters described in this subsection. The following matters must be reported:

  (1) any administrative order issued by state or federal authorities, which order:

    (A) is based upon a finding that such person has engaged in fraudulent conduct; or

    (B) was entered after notice and opportunity for a hearing, denying, suspending, or revoking the person's registration as an investment adviser, investment adviser representative, dealer, or agent, or the substantial equivalent of those terms;

  (2) any felony criminal action or conviction;

  (3) any misdemeanor action or conviction based on fraud, deceit, or wrongful taking of property;

  (4) any order, judgment, or decree entered by any court of competent jurisdiction which temporarily or permanently restrains or enjoins such person from engaging in or continuing any conduct or practice in connection with the purchase or sale of any security or involving any false filing with any state; or which restrains or enjoins such person from activities subject to federal or state statutes designed to protect consumers against unlawful or deceptive practices involving insurance, commodities or commodity futures, real estate, franchises, business opportunities, consumer goods, or other goods and services;

  (5) any expulsion, bar, suspension, censure, fine, or penalty imposed by a self-regulatory organization;

  (6) any change in any other information previously disclosed to the Securities Commissioner on any application form or filing; and

  (7) the filing of any voluntary or involuntary bankruptcy petition.

(b) Upon request by the Securities Commissioner, an investment adviser or investment adviser representative is required to furnish to the Commissioner copies of the order, conviction, or decrees, or other documents which evidence events disclosable pursuant to subsection (a) of this section.

(c) For purposes of this section an "investment adviser" shall include any partners, directors, executive officers, or beneficial owners of 10% or more of any class of the equity securities of an investment adviser (beneficial ownership meaning the power to vote or direct the vote of and/or the power to dispose or direct the disposition of such securities).

(d) Each person registered as an investment adviser shall update the Form ADV Part 2 or disclosure document as part of any amendment or annual updating amendment. For purposes of this subsection, "annual updating amendment" means an amendment to an investment adviser's Form ADV filed within 90 days after an investment adviser's fiscal year end that is used to update the responses to any other item for which the information is no longer accurate.

Source Note: The provisions of this §116.9 adopted to be effective August 12, 2001, 26 TexReg 5799; amended to be effective March 9, 2011, 36 TexReg 1473

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