Texas Investment Adviser Regulation
Texas is one of the largest states for state-registered investment advisers. NASAA's 2026 Investment Adviser Section report counts 1,379 advisers registered with Texas as their home state, the second-largest figure among the states, and 4,622 total state registrations in Texas. The Texas State Securities Board (TSSB) regulates this industry. The TSSB administers the Texas Securities Act and is responsible for the registration, examination, and enforcement activities related to investment advisers operating in the state. Advisers seeking to register in Texas must comply with both the standard IARD filing requirements and Texas-specific provisions outlined in the TSSB's rules and regulations.
TSSB Registration and Form ADV Filing
Registration with the TSSB requires filing Form ADV through the IARD system and paying applicable fees. Texas requires investment adviser representatives to be registered individually and to have passed a qualifying examination, either the Series 65 or Series 66 (in combination with the Series 7). The TSSB recognizes certain professional designations as examination waivers, consistent with NASAA's model rule on examination requirements. Firms registering in Texas should be aware that the TSSB may conduct a review of the initial application and request additional information before approving the registration.
Texas-Specific Registration Requirements
Notice filing requirements in Texas apply to SEC-registered advisers who have clients in the state. These advisers must file a notice with the TSSB through the IARD system and pay the applicable notice-filing fee. The notice filing must be renewed annually, and failure to maintain a current notice filing while conducting advisory business in Texas constitutes a violation of the Texas Securities Act. Advisers should ensure that their notice filing is submitted before they begin soliciting or accepting clients in the state.
Examination Practices and Frequency
Texas adopted the SEC Marketing Rule by reference (7 TAC §116.15, effective March 13, 2025), so Texas-registered advisers' advertisements are measured against the same framework that applies to SEC-registered advisers, alongside the anti-fraud provisions of state law. Social media posts, website content and online advertising are covered when they meet the rule's definition of an advertisement. Advisers operating in Texas should ensure that all marketing materials are reviewed for accuracy, include required disclosures, and do not contain exaggerated claims about the adviser's qualifications, performance, or services.
Recordkeeping and Fee Disclosure Requirements
Examination priorities of the TSSB have focused on several key areas in recent examination cycles, including adequacy of compliance programs, fee transparency and billing practices, suitability of investment recommendations, custody and safeguarding of client assets, and cybersecurity preparedness. The TSSB conducts both routine and for-cause examinations and participates in NASAA's coordinated examination programs. Advisers should maintain examination-ready files and be prepared to produce requested documents within the timeframes specified by examiners.
Multi-State Advisers Operating in Texas
The TSSB publishes its enforcement actions, including actions involving unregistered activity and fraud, and they are a useful guide to what draws regulatory attention in Texas. Proper registration and ongoing compliance remain the foundation for any adviser operating in the state.
Compliance Approved Support
Compliance Approved supports Texas-registered advisers with home-state requirement tracking, an examination readiness view, marketing review capabilities against the SEC Marketing Rule framework that Texas has adopted by reference, and regulatory update tracking. Our platform helps Texas advisers manage their compliance obligations efficiently.