SECTION 116.21. System Addressing Suspected Financial Exploitation of Vulnerable Customers Pursuant to the Texas Securities Act, Section 45

(a) System. Each investment adviser shall establish, maintain, and enforce a written system of policies, programs, plans, or procedures to address suspected financial exploitation of vulnerable adults. The system must be reasonably designed to achieve compliance with the Texas Securities Act, Section 45.

(b) Reporting. The report of suspected financial exploitation (complaint) required by the Texas Securities Act, Section 45.C, must be made in writing to the Securities Commissioner. The complaint may be in the form of a letter or memorandum and submitted electronically, by facsimile, or any other method designed to assure its prompt receipt. A template for submitting the required information is available on the website of the Texas State Securities Board. The complaint shall include:

(1) the name, age, and address of the vulnerable adult;

(2) the name and address of any person responsible for the care of the vulnerable adult;

(3) the nature and extent of the condition of the vulnerable adult;

(4) the basis of the investment adviser's knowledge; and

(5) any other relevant information.

Source Note: The provisions of this §116.21 adopted to be effective June 12, 2018, 43 TexReg 3781