Tuesday, June 26, 2012

Texas Proposes Changes to Accredited Investor, Finder and Successor Registration

Amendments to the exemption for individual accredited investor sales, and to the application procedures for finders and successor entity securities dealers and investment advisers were proposed by the Texas State Securities Board.

The statement required for limited use advertisements in connection with individual accredited investor sales would exclude the value of the person's primary residence from that person's net worth calculation.

Finders would be no longer register using the procedures for securities dealers but instead follow application procedures proposed specifically for them.

The types of structural changes initiating successor registration for securities dealers or investment advisers would be separately identified to allow dealers or advisers whose structural changes are less comprehensive to file an amendment rather than a new application.

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