1. (a) Requirement. To determine the applicant's qualifications and competency to engage in the business of rendering investment advice, the State Securities Board requires written examinations. Applicants must make a passing score on any required examination.

2. (b) Examinations accepted.

   1. (1) Each applicant for registration as an investment adviser or investment adviser representative must pass:

      1. (A) the Uniform Investment Adviser Law Examination (the new entry level competency examination, Series 65, administered after December 31, 1999); or

      2. (B) the following combination of examinations:

         1. (i) a general securities representative examination as described in §115.3(b)(2) of this title (relating to Examination) or a limited examination as described in §115.3(b)(3) of this title; and
         2. (ii) the Uniform Combined State Law Examination (Series 66), the Uniform Investment Advisers State Law Examination (Series 65, as it existed and was administered on or before December 31, 1999), or an examination on the Texas Securities Act administered by this Agency.
   2. (2) Each of these examinations (except the Texas Securities Act examination) is administered by the NASD and can be scheduled by submitting a Form U-10 to the NASD.

3. (c) Waivers of examination requirements.

   1. (1) All persons who were registered in Texas on August 23, 1963, are not required to take any examinations.

   2. (2) A full waiver of the examination requirements of the Texas Securities Act, §13.D, is granted by the Board to the following classes of persons:

      1. (A) a person who was registered as an investment adviser or investment adviser representative on or before December 31, 1999, provided the person has maintained a registration as an investment adviser or investment adviser representative with any state securities administrator that has not lapsed for more than two years from the date of the last registration;
      2. (B) applicants who are certified by the Association for Investment Management and Research, or its predecessors, the Federation of Chartered Financial Analysts or by the Institute of Chartered Financial Analysts, to be chartered financial analysts (CFA);
      3. (C) applicants who are certified by the Certified Financial Planner Board of Standards, Inc., to use the mark "CERTIFIED FINANCIAL PLANNER" (CFP);
      4. (D) applicants who are designated by the American Institute of Certified Public Accountants as accredited personal financial specialists (PFS);
      5. (E) applicants who are designated by the Investment Counsel Association of America, Inc., as Chartered Investment Counsel (CIC);
      6. (F) applicants who are designated by the American College, Bryn Mawr, Pennsylvania, as chartered financial consultants (ChFC); or
      7. (G) a person who completed the examinations required under subsection (b) of this section, 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.
   3. (3) The Association for Investment Management and Research, the Certified Financial Planner Board of Standards, Inc., the American Institute of Certified Public Accountants, the American College, and the Investment Counsel Association of America, Inc., are required to submit to the Securities Commissioner any changes to their certification programs as such changes occur.
   4. (4) A partial waiver of the examination requirements of the Texas Securities Act, §13.D, is granted by the Board to solicitor applicants. Such persons are required to pass only an examination on state securities law.
   5. (5) 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, §13.D.

4. (d) Texas securities law examination.

   1. (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 9:00 a.m. on each Tuesday at the office of the State Securities Board in Austin. The examination may be taken at other locations near principal population centers across the state. Testing centers require reservations and may charge an additional (monitor) fee for administering the examination. A list of examination centers with additional details may be obtained from the State Securities Board.
   2. (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. (3) The passing score for all applicants on the examination on the Texas Securities Act is 70%. An applicant who fails the examination on the Texas Securities Act may request reexamination. The applicant must bring his or her application up to date before retaking an examination.

Source Note:The provisions of this §116.3 adopted to be effective August 12, 2001, 26 TexReg 5799.