Indiana House Bill HB1545

Indiana 2025 Regular Session

• Introduced: 1/21/25
• Refer: 1/21/25

Caption

Investment adviser representatives and agents.

Impact

The implications of HB1545 are significant for the securities industry in Indiana, particularly for agents and investment advisers. By instituting examination requirements and mandating continuing education programs, the state aims to ensure that financial representatives possess the necessary knowledge and skills to serve the public effectively. Such measures are expected to elevate the overall quality of financial advice available to consumers and can foster increased trust in the investment advisory profession. Additionally, the extension of examination validity under certain conditions is designed to retain qualified professionals in the market, thereby preventing disruptions in service due to regulatory compliance issues.

Summary

House Bill 1545 seeks to amend the Indiana Code to enhance the regulation of investment adviser representatives and agents. The bill requires that individuals seeking to register as agents of a broker-dealer or as investment adviser representatives must pass specific examinations administered by the Financial Industry Regulatory Authority (FINRA), unless they meet certain exceptions. This new regulation emphasizes proficiency in the securities industry and reinforces the necessity for qualifying examinations to enhance the competence of individuals operating in this capacity. The bill is set to take effect on July 1, 2025, signaling the state's commitment to maintaining high standards in financial advisory roles.

Contention

Notable points of contention may arise regarding the requirements placed on applicants, especially concerning the financial burden of examination fees and the potential for excluding competent individuals who may not have the means to cover these costs. Opponents could argue that these stringent requirements create barriers to entry for aspiring investment advisers and further concentrate the market within established firms. On the other hand, proponents of the bill will likely emphasize that the measures are necessary to prevent exploitation and promote consumer protection in the investment advisory field. Overall, the discourse surrounding HB1545 reflects a critical balance between regulatory diligence and accessibility in the financial services industry.