Texas Broker "Urges" PUC To Require Brokers To Procure Bonds, Maintain Minimum Accounts As Part Of Registration
Raises Concern Strawman Proposal To Require Disclosure Of Broker Compensation
September 26, 2019 Email This Story Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
The following story is brought free of charge to readers byEC Infosystems, the exclusive EDI provider of EnergyChoiceMatters.com
Marketing Systems Group, LLC ("MSG"), a registered broker in Texas, filed comments with the Public Utility Commission of Texas urging the Commission to include a bonding or similar requirement under the proposed electric broker registration rules
As part of its comments to the Texas PUC, Marketing Systems Group said, "Although the Commission did not specify this directly in the proposed changes, we would urge the
Commission to require brokers to procure bonds or maintain minimum accounts as part of the registration process under §25.112 (b) (10)."
Marketing Systems Group also raised concern with the strawman's proposal requiring the disclosure of compensation to brokers
"[W]e would like to express out concern regarding §25.486 (d) (5), which states brokers must disclose
to clients how brokers will be compensated for providing brokerage services including the method of
calculation for the compensation. We regard this information as highly confidential, specifically how we
calculate our fees. Furthermore, it is not industry standard to disclose this information," Marketing Systems Group said in its comments
A reminder that under Staff's original filing of the strawman, Staff requested that interested persons submit written comments on the strawman by September 30, 2019.