Section 139.18 - Dealer and Investment Adviser Use of the Internet To Disseminate Information on Products and Services(a) Dealers, investment advisers, dealer agents, and investment adviser representatives who use the Internet, the World Wide Web, and similar proprietary or common carrier electronic systems (collectively, the "Internet") to distribute information on available products and services through certain communications made on the Internet directed generally to anyone having access to the Internet, and transmitted through postings on Bulletin Boards, displays on "Home Pages" or similar methods ("Internet Communications") shall not be deemed to be a "dealer" in this state for purposes of the Act, §4.D, based solely on that fact if the following conditions are observed: (1) The Internet Communication contains a legend in which it is clearly stated that: (A) the dealer, investment adviser, dealer agent, or investment adviser representative in question may only transact business in this state if first registered, excluded, or exempted from Texas dealer, investment adviser, dealer agent, or investment adviser representative registration requirements, as may be; and(B) follow-up, individualized responses to persons in Texas by such dealer, investment adviser, dealer agent, or investment adviser representative that involve either the effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, as may be, will not be made absent compliance with Texas dealer, investment adviser, dealer agent, or investment adviser representative registration requirements, or an applicable exemption or exclusion;(2) The Internet Communication contains a mechanism, including and without limitation, technical "firewalls" or other implemented policies and procedures, designed reasonably to ensure that prior to any subsequent, direct communication with prospective customers or clients in Texas, said dealer, investment adviser, dealer agent, or investment adviser representative is first registered in Texas or qualifies for an exemption or exclusion from such requirement. Nothing in this section shall be construed to relieve a Texas registered dealer, investment adviser, dealer agent, or investment adviser representative from any applicable securities registration requirement in Texas;(3) The Internet Communication does not involve either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, as may be, in Texas over the Internet, but is limited to the dissemination of general information on products and services; and(4) In the case of a dealer agent or investment adviser representative: (A) the affiliation with the dealer or investment adviser of the dealer agent or investment adviser representative is prominently disclosed within the Internet Communication;(B) the dealer or investment adviser with whom the dealer agent or investment adviser representative is associated retains responsibility for reviewing and approving the content of any Internet Communication by a dealer agent or investment adviser representative;(C) the dealer or investment adviser with whom the dealer agent or investment adviser representative is associated first authorizes the distribution of information on the particular products and services through the Internet Communication; and(D) in disseminating information through the Internet Communication, the dealer agent or investment adviser representative acts within the scope of the authority granted by the dealer or investment adviser.(b) The position expressed in this section extends to state dealer, investment adviser, dealer agent, and investment adviser representative registration requirements only, and does not excuse compliance with applicable securities registration, antifraud, or related provisions.(c) Nothing in this section shall be construed to affect the activities of any dealer, investment adviser, dealer agent, or investment adviser representative engaged in business in this state that is not subject to the jurisdiction of the Securities Commissioner as a result of the National Securities Markets Improvement Act of 1996, as amended.7 Tex. Admin. Code § 139.18
The provisions of this §139.18 adopted to be effective December 2, 1997, 22 TexReg 11668.