General Information

In general, individuals and firms engaged in the securities industry in Indiana are required to meet threshold requirements and must register with the Indiana Secretary of State, Securities Division (“Division”). In some limited circumstances, the requirements for those engaged in the securities industry in Indiana can be waived as permitted by the Indiana Code and Indiana Administrative Code.

As set forth in further detail below, the general requirement that a broker-dealer registered in Indiana must register two principals may be waived for certain broker-dealer firms with approval of a Dual Principal Waiver. Additionally, the examination requirements for investment adviser representatives and broker-dealer agents may be waived for those with requisite work experience with approval of an Examination Waiver or if the individual maintains one of the approved professional designations. Finally, the IUSA prohibits a broker-dealer agent from registering as an agent with more than one firm. A Dual Registration Waiver may waive this prohibition based on the affiliation and consent of the broker-dealers involved.

Requirements
Examination Waiver: Investment Adviser Representative
  • In order to become registered in Indiana, an investment adviser representative must pass the requisite examinations. An investment adviser or investment adviser representative must pass either the Uniform Investment Adviser Law Examination (Series 65); or the applicable required FINRA examination(s) and the Uniform Combined State Law Examination (Series 66).
  • An investment adviser representative may apply for a waiver of these examination requirements through the Indiana Securities Portal.
  • At the sole discretion of the Securities Commissioner, the following may be granted waiver of the examination requirements for an investment adviser representative:
    • Those seeking registration who are currently registered as an investment adviser or investment adviser representative in any other jurisdiction in the United States are eligible for an examination waiver.
  • The Securities Commissioner will analyze the waiver request by reviewing the individual’s history of examinations, employment, waivers, registration, disclosures, among other factors.
  • The examination requirements will be waived for individuals that maintain any of the following professional designations:
    • Certified Financial Planner (CFP) granted by the CFP Board of Standards;
    • Chartered Financial Consultant (ChFC) granted by the American College, Bryn Mawr, Pennsylvania;
    • Personal Finance Specialist (PFS) granted by the American Institute of Certified Public Accountants;
    • Chartered Investment Counselor (CIC) granted by the Investment Adviser Association; or
    • Other professional designations that the Securities Commissioner may recognize on a case-by-case basis.
  • If an individual fails to continuously maintain the professional designation, they would be subject to the examination requirements.
Examination Waiver: Broker-Dealer Agent
  • In order to become registered in Indiana, a representative of a broker-dealer must pass the requisite examinations. Broker-Dealer Principals and Branch Managers must pass the applicable FINRA examinations. Broker-Dealer Agents must pass the applicable FINRA examination(s) and either the Uniform Securities Agent State Law Exam (Series 63); or the Uniform Combined State Law Examination (Series 66).
  • A broker-dealer agent may apply for a waiver of the examination requirements through the Indiana Securities Portal.
  • Examinations for a broker-dealer agent may be waived by a proper showing or certification that the agent:
    • Is not to be actively engaged in the general sales of securities;
    • Has within the preceding two (2) years passed the required examinations;
    • Has passed the approved examinations and, thereafter, prior to making application, remained continuously in the securities business while licensed by another state; or
    • Was properly registered as an agent within the two years immediately preceding the date of application.
  • Examinations for a principal may be waived up on a proper showing or certification that the principal has:
    • Passed the required examinations within the preceding two (2) years; or
    • Passed the required examinations and thereafter remained continuously in the securities industry, duly licensed by another state.
Dual Principal Waiver
  • A broker-dealer seeking registration in Indiana must register two (2) principals who are registered as agents with the broker-dealer and have each satisfied the examination requirements for a principal.
  • A broker-dealer may apply for a waiver of the dual principal requirement through the Indiana Securities Portal.
  • A broker-dealer may be eligible for a waiver of the dual-principal requirement if:
    • The broker-dealer maintains no branch offices in any location (not including the broker-dealer’s principal place of business) and the broker-dealer employs no more than ten (10) agents in total.
  • An approved dual principal waiver is effective only while the broker-dealer fits the above criteria.
  • Even with a waiver, a broker-dealer is still required to maintain one (1) principal registered with the firm who is registered as an agent with the firm and satisfies the registration requirements.
Dual Registration Waiver
  • Generally, the Indiana Code prohibits a broker-dealer agent from registering with more than one (1) broker-dealer. An agent seeking dual registration, or registration with more than one (1) broker-dealer, must seek a waiver from the Division.
  • A broker-dealer may apply for a waiver of the prohibition against dual registration on behalf of individuals through the Indiana Securities Portal.
  • A dual registration waiver may be granted if:
    • Each broker-dealer with whom the agent seeks to register provides written consent to the dual registration and the broker-dealers are affiliated.
Relevant Law

Indiana Code [23-19-4]
Indiana Administrative Code [710 IAC 4]
Broker-Dealer and Agent Examinations [18-0002 AO - January 25, 2018]
Investment Adviser and Investment Adviser Representative Examinations [18-0003 AO - January 25, 2018]
Compliance Alert: Indiana Securities Division Response to the COVID-19 Outbreak [March 24, 2020]

Helpful Resources

FINRA: Central Registration Depository (Web CRD)
FINRA: Permitted Activities of Registered Representatives and Requisite Exams
FINRA: Registration and Qualification
Indiana Securities Portal

Division Personnel

Stephen Deeg
Enforcement Attorney
sdeeg@sos.in.gov
317-232-1018