TITLE 7. BANKING AND SECURITIES

PART 7. STATE SECURITIES BOARD

CHAPTER 109. TRANSACTIONS EXEMPT FROM REGISTRATION

7 TAC §109.7

The Texas State Securities Board adopts an amendment to §109.7, concerning Secondary Trading Exemption under the Texas Securities Act, §5.O, without changes to the proposed text as published in the February 28, 2020, issue of the Texas Register (45 TexReg 1289). The amended rule will not be republished.

The amendment updates the "manual exemption" contained in §5.O of the Act by amending the definition of "recognized securities manual" in subsection (e) to remove S&P Capital IQ Standard Corporations Descriptions, which ceased publication in 2016.

The amendment apprises registered dealers relying upon the securities exemption contained in §5.O, for secondary market sales, of the manuals recognized by the Board for purposes of the exemption.

No comments were received regarding adoption of the amendment.

The amendment is adopted under Texas Civil Statutes, Article 581-28-1. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Texas Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes.

The adopted amendment affects Texas Civil Statutes, Article 581‑5.O.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 28, 2020.

TRD-202002190

Travis J. Iles

Securities Commissioner

State Securities Board

Effective date: June 17, 2020

Proposal publication date: February 28, 2020

For further information, please call: (512) 305-8303