7 Tex. Admin. Code § 115.3 - Examination
(a) Requirement.
(1) To determine the applicant's qualifications and competency
to engage in the business of dealing in and selling securities, the State Securities Board requires a written examination on general securities
principles and on state securities law. Applicants must make a passing score, as determined by NASAA, FINRA, or the Securities Commissioner, as
appropriate, on any required examination.
(2) If, at the time the applicant completes the examinations
required in subsection (b) of this section, the Securities Industry Essentials (SIE) examination is coupled with the FINRA general or specialized
knowledge examination for the registration category sought, the applicant must obtain a passing score on the SIE examination.
(b) Examinations accepted.
(1) Each applicant must pass an examination on general
securities principles. This requirement is satisfied by passing the examination on general securities principles administered by FINRA. As set forth
in paragraph (3) of this subsection, applicants for restricted registrations may substitute a specialized knowledge examination dealing with a
particular type of security for an examination on general securities principles.
(2) The Securities
Commissioner recognizes the general examinations administered by FINRA as an examination on general securities principles sufficient to meet that
requirement in paragraph (1) of this subsection.
(3) In lieu of an examination on general securities
principles, an applicant may substitute one or more specialized knowledge examination(s) administered by FINRA. The Securities Commissioner also
recognizes the specialized knowledge examinations administered by FINRA as restricted registration categories. The registration of an applicant
passing a specialized knowledge examination is restricted and effective only for conducting the business and securities activities and effecting
transactions associated with the specialized examination.
(4) Each applicant must pass an examination on
state securities law. This requirement may be satisfied by passing an examination on the Texas Securities Act administered by this Agency or by
passing the NASAAUniform Securities Agent State Law Examination (Series 63) or the NASAAUniform Combined State Law Examination (Series 66).
(c) Waivers of examination requirements.
(1) All persons who were
registered in Texas on August 23, 1963, are not required to take any examinations.
(2) A full waiver of
the examination requirements of the Texas Securities Act, §4004.151, is granted by the Board to the following classes of persons:
(A) issuers offering securities in rights offerings to their own securities holders;
(B) issuers offering their own securities in exchange for outstanding securities of another corporation, provided
consummation of the offer is dependent upon tender of at least 80% of such outstanding securities;
(C)
issuers restricting distribution of securities to security holders of an affiliate company, a subsidiary, or a parent of the issuer, provided the
registration certificate is issued on a temporary basis and terminated immediately after the offering;
(D) officers and employees whose firms restrict their officers' and employees' securities activities to acting as
brokers between and among principals for the sale of a majority of the stock or equity securities of a privately held business pursuant to a
privately negotiated purchase agreement, where the managerial control of the business will devolve upon the purchaser(s) and where compensation
received by the firm will be payable for the brokerage activities only;
(E) a finder;
(F) a person who completed the required examinations, but whose registration has lapsed for more than two years and
who has been continually employed in a securities-related position with an entity which was not required to be registered;
(G) a person who completed the required examinations and whose registration with FINRA and with another state
securities regulator has not lapsed for more than two years; and
(H) a Texas crowdfunding portal and its
agents.
(3) A partial waiver of the examination requirements of the Texas Securities Act,
§4004.151, is granted by the Board to the following classes of persons:
(A) applicants who have been
continuously registered with the SEC, FINRA, or any other exchange listed in the Act, §4005.054, or recognized by the Board pursuant to §
111.2 of this title (relating to Listed and
Designated Securities) for 10 years immediately preceding the application for registration in Texas. These applicants are required to pass an
examination on state securities law as required by subsection (b)(4) of this section;
(B) applicants who
passed the "state securities examination" promulgated and formerly administered by the Psychological Corporation, New York, New York, and later by
the Psychological Corporation, San Antonio, Texas, which was an examination on general securities principles. These applicants are required to pass
an examination on state securities law as required by subsection (b)(4) of this section;
(C) applicants
seeking registration for the purpose of dealing exclusively in real estate syndication interests or condominium securities, provided such persons are
licensed, at the time of application, under The Real Estate License Act (Texas Occupations Code, Chapter 1101). Such persons are not required to take
a general securities examination, but are required to pass an examination on state securities law as required by subsection (b)(4) of this
section;
(D) applicants seeking registration for the purpose of dealing exclusively in oil and gas
interests (other than interests in limited partnerships). Such persons are not required to take the general securities examination, but are required
to pass an examination on state securities law as required by subsection (b)(4) of this section; and
(E)
applicants who are officers, partners, or employees of an issuer (other than an open-end investment company) if the issuer's securities will be
registered for sale in Texas. Such officers, partners, and employees are not required to take the general securities examination, but are required to
pass an examination on state securities law as required by subsection (b)(4) of this section. Evidences of registration granted pursuant to this
subparagraph are restricted to sales of the currently registered securities of the issuer.
(4)
The Securities Commissioner in his or her discretion is authorized by the Board to grant full or partial waivers of the examination requirements of
the Texas Securities Act, §4004.151.
(5) The following classes of persons are granted a partial
waiver by the Board of the examination requirements of §4004.151 of the Act and subsection (a)(1) of this section:
(A) NASAA Exam Validity Extension Program ("EVEP"). Applicants who previously took and passed an examination on
state securities law as required by subsection (a)(1) of this section (State Law Requirement), whose registration with another state securities
regulator has not lapsed for more than five years who have participated in the EVEP and have maintained compliance with the EVEP requirements are
granted a waiver of the State Law Requirement.
(B) FINRA Maintaining Qualifications Program ("MQP").
(i) Applicants who previously took and passed an examination or examinations on general securities principles as
required by subsection (a)(1) of this section (GSP Requirement), whose registration with FINRA and with another state securities regulator has not
lapsed for more than five years who have participated in the MQP and have maintained compliance with the MQP requirements are granted a waiver of the
GSP Requirement.
(ii) Applicants who previously took and passed an examination or examinations on one or
more specialized knowledge examinations administered by FINRA as provided in subsection (b)(3) of this section, whose registration with FINRA and
with another state securities regulator has not lapsed for more than five years who have participated in the MQP and have maintained compliance with
the MQP requirements are granted a waiver of the requirements to pass the FINRA specialized knowledge examination(s) required to obtain the
applicable restricted registration(s) as provided in subsection (b)(3) of this section.
(C)
FINRA Examination Waivers. Applicants who have received a waiver of any examination requirement(s) by FINRA, including an examination on general
securities principles, the SIE examination, or one or more specialized knowledge examinations administered by FINRA, are granted a waiver of the
corresponding examination requirement(s) in this section.
(d) Texas securities law
examination.
(1) The fee for each filing of a request to take the Texas securities law examination is $35. An
admission letter issued by the Board is required for all entrants. The examination is given at the mainoffice of the State Securities Board in Austin
and at the Agency's branch offices.
(2) While taking the examination on the Texas Securities Act, each
applicant may use an unmarked copy of the Texas Securities Act as it is printed and distributed by the State Securities Board. No other reference
materials are allowed to be used by applicants during the examination.
(3) Reexamination. An applicant
who fails the examination on the Texas Securities Act may request to retake the examination no sooner than after one week from the date of the
examination. The applicant must bring his or her application up to date before retaking an examination.
(4) Disability accommodations. The Texas securities law examination shall be administered to applicants with
disabilities in compliance with the Americans with Disabilities Act of 1990, as amended ("ADA").
(A) Any applicant
with a disability who wishes to request disability accommodations must submit to the Securities Commissioner a Form 133.3, ADA Accommodations Request
Form, that has been completed and signed by the applicant and includes supporting documentation from a licensed or certified health professional
appropriate for diagnosing and treating the disability, at least 60 days prior to the examination. A prior history of receiving disability
accommodations, without demonstration of a current need, will not necessarily warrant approval of disability accommodations.
(B) The Securities Commissioner may request additional documentation to substantiate a request for disability
accommodations.
(C) Documentation shall not be older than three years from the date of
submission.
(D) All medical records provided to the Securities Commissioner are confidential under the
Health Insurance Portability and Accountability Act ("HIPAA").
(E) The Securities Commissioner is not
required to approve every request for disability accommodations or to provide every accommodation or service requested. The Securities Commissioner
is not required to grant a request for disability accommodations if doing so would fundamentally alter the measurement of knowledge or the
measurement of skill intended to be tested by the Texas securities law examination, would affect the security of the examination, or would create an
undue financial or administrative burden.
(F) Once disability accommodations have been granted, they may
not be altered during the examination unless prior approval of the Securities Commissioner is obtained.
(5) Information about taking the examination and how to apply to take the examination in Austin or at an Agency
branch office is available on the Agency's website located at www.ssb.texas.gov or by contacting the
Registration Division of the State Securities Board.
Notes
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