SECTION 5.3. General Ethical Standards

(a) Financial advisors and service providers must comply with the standards of conduct and conflict of interest provisions of Government Code, Chapter 572 and the provisions of Penal Code, Chapters 36 and 39 that are applicable to a state officer or employee.

(b) Financial advisors and service providers who are members of professional organizations that have promulgated standards of conduct must comply with those standards, and with other applicable ethics codes and standards of conduct. Financial advisors and service providers must also comply with the Code of Ethics and Standards of Professional Conduct of the Association for Investment Management and Research.

(c) Financial advisors and service providers must be honest in providing services and advice to the commission and the department, and loyal to the interests of the commission and the department to the extent that conflicting duties do not legally have priority. Financial advisors and service providers shall avoid personal, employment, or business relationships that create conflicts of interest, and shall disclose any conflicts of interest in the manner prescribed in §5.4 of this subchapter.

(d) Financial advisors and service providers shall not use nonpublic information gained through a relationship with the commission or the department to seek or obtain personal gain beyond agreed compensation and any authorized expense reimbursement.

(e) Financial advisors and service providers shall disclose in writing to the executive director any business or financial transaction greater than $50 in value with a member of the commission or a department employee within 10 days of the transaction. This obligation does not apply to a financial account that is provided to a member of the commission or a department employee under the same terms and conditions as are provided to members of the general public.

Source Note: The provisions of this §5.3 adopted to be effective January 8, 2004, 29 TexReg 227