SECTION 6.3. Disclosure Requirements

(a) A financial advisor or service provider shall disclose in writing to the comptroller and to the state auditor:

(1) any relationship the financial advisor has with any party to a transaction with the comptroller, other than a relationship necessary to the investment or fund management services that the financial advisor performs for the comptroller, if the relationship could reasonably be expected to diminish the financial advisor's independence of judgment in the performance of the person's responsibilities to the comptroller; and

(2) all direct or indirect pecuniary interests the financial advisor has in any party to a transaction with the comptroller, if the transaction is connected with any financial advice or service the financial advisor provides to the comptroller in connection with the management or investment of state funds.

(b) The financial advisor or service provider shall disclose a relationship described by subsection (a) without regard to whether the relationship is a direct, indirect, personal, private, commercial, or business relationship.

(c) A financial advisor or service provider shall file annually a statement with the comptroller and with the state auditor. The statement must disclose each relationship and pecuniary interest described by subsection (a) or, if no relationship or pecuniary interest described by that subsection existed during the disclosure period, the statement must affirmatively state that fact.

(d) The annual statement must be filed not later than April 15 on a form prescribed by the comptroller. The statement must cover the reporting period of the previous calendar year.

(e) The financial advisor or service provider shall promptly file a new or amended statement with the comptroller and with the state auditor whenever there is new information to report under subsection (a).

Source Note: The provisions of this §6.3 adopted to be effective February 3, 2004, 29 TexReg 1014