Tex. Gov't Code § 4008.101 · Subchapter C. CIVIL LIABILITY OF INVESTMENT ADVISERS AND INVESTMENT ADVISER REPRESENTATIVES
INVESTMENT ADVISER OR INVESTMENT ADVISER REPRESENTATIVE LIABILITY.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) An investment adviser or investment adviser representative who renders services as an investment adviser in violation of Section 4004.052 or 4004.102(a) or an order under Section 4007.102 or 4007.104 is liable to the purchaser, who may sue for damages in the amount of any consideration paid for the services.
(b) Except as provided by Subsection (c), an investment adviser or investment adviser representative who commits fraud or engages in a fraudulent practice in rendering services as an investment adviser is liable to the purchaser, who may sue for damages.
(c) An investment adviser or investment adviser representative who in rendering services as an investment adviser makes an untrue statement of a material fact or omits to state a material fact necessary in order to make the statement made, in light of the circumstances under which the statement is made, not misleading is not liable under Subsection (b) if the adviser or representative proves:
(1) the purchaser knew of the truth or omission; or
(2) the adviser or representative did not know, and in the exercise of reasonable care could not have known, of the untruth or omission.
Notes and commentary — not statutory text
History
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/GV/htm/GV.4008.htm
- Text hash
- sha256 e1b67916f33cfe97dff0c73518b63d8b18ce3e519f32eaf358cd803edc6883d1
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Government Code
- Tex. Gov't Code § 4004.052REGISTRATION OF INVESTMENT ADVISERS REQUIRED.Printed as Section 4004.052 or 4004.102(a)
- Tex. Gov't Code § 4004.102REGISTRATION OF INVESTMENT ADVISER REPRESENTATIVES.Printed as Section 4004.052 or 4004.102(a)
- Tex. Gov't Code § 4007.102CEASE AND DESIST ORDER: INVESTMENT ADVISER OR INVESTMENT ADVISER REPRESENTATIVE.Printed as Section 4007.102 or 4007.104
- Tex. Gov't Code § 4007.104EMERGENCY CEASE AND DESIST ORDER.Printed as Section 4007.102 or 4007.104
Cited by 2 provisions
Provisions in this library whose text cites Tex. Gov't Code § 4008.101. Each shows the citation as that text prints it.
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.