TEXAS

FROM ON OR ABOUT JANUARY 1, 2003 TO ON OR ABOUT NOVEMBER 21,2004, MACO STEWART FOWLKES PROVIDED INVESTMENT ADVICE IN TEXAS TO THE CLIENTS OF BRANSON FOWLKES & COMPANY, INC. FOR COMPENSATION, WHEN MACO STEWART FOWLKES WAS NOT REGISTERED AS AN INVESTMENT ADVISER REPRESENTATIVE WITH THE SECURITIES COMMISSIONER.

Order

Monetary/Fine

$10,000.00

REPRIMAND

PURSUANT TO SECTION 23-1 OF THE TEXAS SECURITIES ACT, MACO STEWART FOWLKES IS ASSESSED AN ADMINISTRATIVE FINE IN THE AMOUNT OF $10,000.

THIS ACTION IS A RESULT OF A CLERICAL ERROR BY THE FIRM. REGISTRANT HAD BEEN REGISTERED INDIVIDUALLY THROUGH THE MANUAL PROCESS WITH THE TSSB SINCE 1994. WHEN THE TSSB TRANSITIONED THE REGISTRATION PROCESS TO THE ELECTRONIC IARD SYSTEM IT INITIALLY ALLOWED ONLY FIRM REGISTRATIONS AND DID NOT ALLOW INDIVIDUAL REGISTRATIONS. AFTER THE INITIAL FIRM IARD REGISTRATION, NEITHER THE FIRM, NOR THE REGISTRANT, WAS NOTIFIED WHEN IARD BEGAN ACCEPTING INDIVIDUAL REGISTRATIONS. NEITHER THE FIRM, NOR THE REGISTRANT WAS NOTIFIED THAT REGISTRANT'S REGISTRATION HAD EXPIRED. THE FIRM DISCOVERED THAT REGISTRANT WAS NOT REGISTERED INDIVIDUALLY IN NOVEMBER 2004 AND IMMEDIATELY REGISTERED ELECTRONICALLY. THE TSSB DETERMINED THE AMOUNT OF THE FINE BASED ON A PERCENTAGE OF THE REVENUE GENERATED DURING THE PERIOD, RATHER THAN A FLAT AMOUNT. IN MY OPINION THE AMOUNT OF THE FINE WAS EXTREMELY EXCESSIVE CONSIDERING THE NATURE OF THE ERROR, THE REASONS BEHIND IT, AND THE LONG HISTORY OF COMPLIANT FILINGS.