Best Securities Lawyers in Texas

About Securities Law in Texas, United States

Securities law in Texas governs the regulation and trading of financial instruments such as stocks, bonds, mutual funds, and other investments. These laws are designed to protect investors from fraud, ensure transparency in the offering and sale of securities, and maintain fair financial markets. While federal law such as the Securities Act of 1933 and Securities Exchange Act of 1934 set broad regulations, Texas has its own securities regulations administered by the Texas State Securities Board. Any investment that involves a financial stake in a business venture, especially where profit comes primarily from the efforts of others, may be considered a security under Texas law.

Why You May Need a Lawyer

There are multiple situations where seeking the advice or representation of a lawyer experienced in securities law can be crucial. Common scenarios include:

• You are starting a business and want to raise capital by offering shares or interests to investors.
• You have been accused of violating securities laws or face regulatory action.
• You are an investor who suspects you have been a victim of securities fraud, misrepresentation, or an unsuitable sale.
• You are a broker-dealer, financial advisor, or investment firm seeking compliance guidance or defense in regulatory proceedings.
• You are facing civil or criminal litigation related to investment activity.

A skilled lawyer can guide you through the complexities of securities regulations, help ensure compliance, and represent your interests if legal disputes arise.

Local Laws Overview

The main source of securities regulation in Texas is the Texas Securities Act, which is enforced by the Texas State Securities Board (TSSB). This law requires that most securities offered or sold in Texas be registered with the State, unless an exemption applies. The law also regulates the registration and conduct of broker-dealers, agents, investment advisers, and investment adviser representatives operating in Texas.

Key aspects of Texas securities laws include:

• Registration Requirements: Both securities and persons dealing in securities must usually be registered with the TSSB unless a specific exemption or federal preemption applies.
• Anti-Fraud Provisions: It is illegal to misrepresent, omit material information, or engage in deceitful practices in connection with the offer or sale of securities.
• Enforcement and Penalties: The TSSB can bring civil actions, administrative sanctions, and work with prosecutors for criminal penalties against those violating state securities laws.
• Investor Protections: Texas law has specific protections for investors, such as limitations on certain offerings, requirements for disclosures, and rights to rescind certain unlawful transactions.
• Blue Sky Laws: Texas has "blue sky" laws designed to prevent securities fraud and protect local investors from risky or fraudulent investment schemes.

Frequently Asked Questions

What is considered a security in Texas?

A security generally includes financial instruments like stocks, bonds, notes, interests in limited partnerships, and investment contracts. The definition can be broad, depending on how an investment is structured and marketed.

Do I need to register my security before offering it in Texas?

Most securities must be registered with the Texas State Securities Board unless an exemption applies, such as private placements or federal preemption under certain securities regulations.

Who oversees securities regulation in Texas?

The Texas State Securities Board is the primary agency overseeing the registration, regulation, and enforcement of securities laws in Texas.

What are some common exemptions from registration?

Exemptions can apply to offerings made to a small number of investors, certain private offerings, or sales to sophisticated investors. Legal counsel can help determine which exemptions may apply.

How do I know if I have been a victim of securities fraud?

If you have suffered losses due to misleading information, high-pressure sales tactics, undisclosed risks, or unsuitable investment recommendations, you may have been a victim. Consult with a securities attorney for an evaluation.

What penalties can be imposed for violating Texas securities laws?

Penalties can include fines, restitution, injunctions, suspension or revocation of licenses, and even criminal prosecution resulting in imprisonment.

Can I sue for losses resulting from securities fraud?

Yes, Texas law allows investors to pursue civil remedies, including suing for rescission (undoing the transaction) or damages caused by securities fraud.

How are brokers and investment advisers regulated in Texas?

They must register with the TSSB unless federally exempt, comply with conduct standards, and provide specific disclosures to clients regarding risks, fees, and conflicts of interest.

What should I do if I am contacted about an unregistered investment opportunity?

Exercise caution, seek documentation, and consult with a licensed securities attorney or contact the TSSB to verify the legitimacy and compliance of the investment.

How can I check if a broker or financial adviser is properly licensed in Texas?

You can search the TSSB’s online database or contact their offices to confirm the licensing status and look for any disciplinary history of an individual or firm.

Additional Resources

If you need more information or wish to report wrongdoing, the following organizations and resources are helpful:

• Texas State Securities Board: The State’s primary regulatory agency for securities.
• U.S. Securities and Exchange Commission (SEC): Federal securities regulator with nationwide jurisdiction.
• Financial Industry Regulatory Authority (FINRA): Self-regulatory body overseeing broker-dealers and offering an arbitration forum for disputes.
• North American Securities Administrators Association (NASAA): Advocacy and resource group for state securities regulators.
• Texas Bar Association: Provides lawyer referral services and resources for legal assistance.

Next Steps

If you believe you need legal assistance with a securities matter in Texas, consider the following steps:

• Document all communications, transactions, contracts, and disclosures related to the investment in question.
• Consult with a licensed Texas attorney experienced in securities law for a thorough evaluation of your case or concern.
• Research the registration status of any security, broker, or investment adviser you are dealing with through the Texas State Securities Board.
• If you suspect fraud or regulatory violations, consider filing a complaint with the TSSB or SEC, and seek legal guidance on potential remedies.
• Explore resources and support offered by state and national regulatory agencies for additional guidance and investor education.

Taking timely action with a legal professional can help protect your rights, ensure compliance, and guide you through the proper resolution of securities issues in Texas.