Senator Angela Paxton of the Texas Legislature has recently filed a bill, Senate Bill 860, that would grant the Attorney General, her husband Ken Paxton, “to exempt entrepreneurs from certain state regulations so they can market ‘innovative financial products or services.’” According to The Texas Tribune, the bill would allow individuals to work as “investment advisors” without registering with the state board, an action which Paxton was criminally charged for in 2015.
The bill is being framed as an effort to enhance consumer protection and would allow broad powers for the consumer protection division.
“SB 860 allows for the growth and economic benefit of the emerging Financial Technology industry while the state provides the necessary regulatory framework and consumer protection in the marketplace. The state agencies that have regulatory oversight of financial institutions and consumer protection laws will provide appropriate regulatory support within the sandbox to ensure that consumers are protected.” -Angela Paxton in a statement to The Texas Tribune
Ken Paxton was charged in 2015 when it was alleged that he did not register with state securities regulators when he was soliciting clients for Mowery Capital Management. It was reported that he engaged in this activity on three separate occasions but his office “did not return requests for comment.”