Texas Adopts Performance Fee and Administrative Procedure Rule Amendments

A performanced-based fees rule for investment advisers was amended by the Texas Securities Board, by replacing some of the language from SEC Rule 205-3 that defines a "qualified client" with a statement that incorporates the entire SEC Rule, effective April 3, 2012. Other changes also adopted on April 3rd were made to the rules of practice in contested cases to more closely align the rules with the Texas Securities Act, the Administrative Procedures Act and the rules of the State Office of Administrative Hearings. Provisions cover administrative hearing notices and costs; burden or proof; subpoenas and depositions; default; informal dispositions, decisions and orders by the Securities Commissioner; motions for rehearing; records; and ex parte communications. Other changes correct a cross-reference in a shelf registration rule and update a citation to the Texas Development Corporation Act.