On March 21, 2021, the Texas Securities Board adopted several amendments to its rules and regulations for registered investment advisers and other financial institutions, intended to harmonize the state’s rules with the amended definitions of accredited investor and qualified institutional buyer implemented by the Securities and Exchange Commission (“SEC”) in December 2020. Concurrently, the Texas Securities Board adopted additional amendments which affect broker dealers and other financial institutions other than registered investment advisers. A summary of the most recent changes adopted by the Texas Securities Board is available here.
With the adoption of these amendments to 7 TAC §107.2, the definitions of “individual accredited investor,” “institutional accredited investor,” and “qualified institutional buyer” now conform with the SEC’s definitions, which were updated to more accurately identify individuals and institutions with the knowledge and expertise to participate in private capital markets without undue risk of harm. In addition, the rule amendments also update the definition of Form D to reference the SEC’s current Form D and expand the definition of the EFD System to accept other specified electronic filings in addition to Form D. Click here to read the amended 7 TAC §107.2.
Also of note to investment advisers, the revised 7 TAC §109.6 now incorporates the SEC’s new definitions of accredited investors and qualified institutional buyers for investment advisers that provide investment advice to financial institutions and certain institutional investors. Click here to read the amended 7 TAC §109.6.
For more information on the SEC’s updated definition of accredited investor, click here to read our recent blog post on the new accredited investor definition.
Further Resources on the New Accredited Investor Definition
- SEC Press Release – “SEC Modernizes the Accredited Investor Definition”
- SEC Public Statement – “Statement on Modernization of the Accredited Investor Definition”
- SEC Final Rule – Accredited Investor Definition
RIA Compliance Consultants encourages investment adviser firms registered in Texas to closely review Texas’ new accredited investor definition and related SEC guidance regarding the updated definition. If your investment adviser firm is an existing client of RIA Compliance Consultants and would like assistance in reviewing your policies and procedures or practices relating to accredited investors, we encourage you to speak with your compliance consultant. Or, if you are not an existing client of RIA Compliance Consultants, click here to set up an introductory call with our Business Development Team.
SEC Adopts New “Accredited Investor” Definition – March 29, 2021
Posted by RCC
Labels: Accredited Investor, SEC, Texas Investment Advisor
Tagged: Accredited Investor, SEC, Texas