The Texas State Securities Board is a regulatory agency responsible for enforcing laws and rules governing the sale of stocks, bonds, and other financial instruments.
The mission of the State Securities Board is to protect Texas investors from fraud and exploitative practices.
Founded in 1957, the agency registers firms and individuals who sell financial securities or give investment advice. It also examines registered firms and enforces the Securities Act through administrative, civil, and criminal actions.
Structure and Leadership
The Texas State Securities Board has five internal divisions: Enforcement, Registration, Inspections and Compliance, General Counsel, and Staff Services. It has a main office in Austin and branch offices in Dallas, Houston, Lubbock, and Corpus Christi.
The agency is overseen by a board of five members who are appointed by the governor for six-year overlapping terms. Board members serve without compensation, but are entitled to per diem and reimbursement of actual travel expenses while performing their official duties.
The duties of the board include periodically updating regulations in the Texas Administrative Code.
Funding for the State Securities Board comes mostly from fees for the registration of securities and financial advisory firms.
Agency Functions
The board’s Enforcement Division is charged with detecting and investigating fraud committed in connection with the sale of securities, illegal sales of unregistered securities, and sales of securities by unregistered dealers.
The division makes criminal referrals to district attorneys and United States attorneys throughout Texas, and it routinely assists prosecutors in drafting indictments, presenting cases to grand juries, and the trial of criminal cases.
The Registration Division reviews applications to register securities for sale in Texas. The primary function of this review is to ensure that investors have access to full and fair disclosure of all relevant investment information, that the promoter and investor share in the results of the venture, prices being asked for the securities are reasonable, conflicts of interest are minimized, and that promotional expenses are reasonable.
The Inspections and Compliance Division conducts periodic examinations of the books and records of registered firms. The primary focus is on state-registered investment advisers who have main offices in Texas as well as dealers who are not members of the Financial Industry Regulatory Authority (FINRA).
Address and Contact
- Headquarters: 208 E. 10th St., Austin, TX 78701
- Mailing Address: P.O. Box 13167 Austin, Texas 78711-3167
- Website: http://www.ssb.state.tx.us/
- Phone: (512) 305-8301
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