Texas security regulators have issued an “Advisory To Insurance Agents” concerning what constitutes a security.

The remarks are in reference to sale of “unregistered investment products.”

In the Advisory, the Texas State Securities Board, Austin, says:

“As under the federal securities law, the Texas Securities Act defines the term ‘security’ broadly to encompass virtually any instrument that might be sold as an investment.

“The law requires that securities and persons offering securities for sale in Texas must be registered with the Securities Commissioner unless a specific exemption from registration applies.”

The Advisory also says the Securites Board and the Texas Department of Insurance are both urging insurance professionals to check first with regulators before offering “any unregistered investment product” to the public in Texas.

see the entire Advisory here