SECTION 5.5. Prohibited Interests and Transactions

(a) Financial advisors and service providers may not, unless waived in writing by the executive director or designee:

(1) have a financial interest in a direct placement investment of state funds;

(2) serve as an officer, director, or employee of an entity in which a direct placement investment of state funds is made; or

(3) serve as a consultant to, or receive any fee, commission, or payment from, an entity in which a direct placement investment of state funds is made.

(b) Financial advisors and service providers that provide investment or funds management advice to the department or the commission shall not engage in any transaction involving state funds with another financial advisor or service provider providing investment or funds management advice to the department or the commission.

Source Note: The provisions of this §5.5 adopted to be effective January 8, 2004, 29 TexReg 227