2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4007 - Enforcement › Subchapter C. Administrative Actions › Section 4007.105. Denial, Suspension, or Revocation of Registration

Sec. 4007.105.  DENIAL, SUSPENSION, OR REVOCATION OF REGISTRATION.  (a)  The commissioner may deny an application for registration under this title, suspend or revoke a  registration issued under this title, place on probation a dealer, agent, investment adviser, or investment adviser representative whose registration has been suspended under this title, or reprimand a person registered under this title if the person:
(1)  has been convicted of a felony;
(2)  has been convicted of a misdemeanor that directly relates to the person's securities-related duties and responsibilities;
(3)  has engaged in:
(A)  an inequitable practice in the sale of securities or in rendering services as an investment adviser; or
(B)  a fraudulent business practice;
(4)  is an insolvent dealer or investment adviser;
(5)  is a dealer and is selling or sold securities in this state through an agent other than a registered agent;
(6)  is an investment adviser and is engaging or 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;
(7)  is an agent and is selling or sold securities in this state for a dealer, issuer, or controlling person with knowledge that the dealer, issuer, or controlling person has not complied with this title;
(8)  is an investment adviser representative and is rendering or rendered services as an investment adviser for an investment adviser in this state whom the representative is not or was not registered to represent;
(9)  has:
(A)  made a material misrepresentation to the commissioner or board in connection with information considered necessary by the commissioner or board to determine:
(i)  a dealer's or investment adviser's financial responsibility; or
(ii)  a dealer's, agent's, investment adviser's, or investment adviser representative's business repute or qualifications; or
(B)  refused to provide information described by Paragraph (A) that the commissioner or board has requested;
(10)  is registered as a dealer, agent, investment adviser, or investment adviser representative and has not complied with an applicable requirement under Section 4004.151(a);
(11)  is the subject of any of the following orders issued within the preceding five years that remain effective:
(A)  an order by the securities agency or administrator of any state, the financial regulatory authority of a foreign country, or 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)  an order suspending or expelling 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 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; or
(E)  an order by the Commodity Futures Trading Commission denying, suspending, or revoking registration under the Commodity Exchange Act (7 U.S.C. Section 1 et seq.);
(12)  is subject to any order, judgment, or decree entered by a court that permanently restrains or enjoins the 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 investment advice; or
(13)  has violated:
(A)  any provision of this title;
(B)  a board rule;
(C)  any order issued by the commissioner; or
(D)  any undertaking or agreement with the commissioner.
(b)  If the commissioner proposes the suspension or revocation of a person's registration, the person is entitled to a hearing before the commissioner or a hearings officer as required by law.
(c)  All registration certificates that have been revoked shall be immediately surrendered to the commissioner on request.
(d)  This section does not affect the confidentiality of investigative records maintained by the commissioner or board.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.