Introduced Version
HOUSE BILL No. 1545
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 23-19-4; IC 23-19-4.3.
Synopsis: Investment adviser representatives and agents. Requires an
applicant seeking to register as an agent of a broker-dealer in Indiana
to pass financial industry regulatory authority (FINRA) examinations
unless certain exceptions apply. Requires an applicant seeking to
register as an investment adviser representative in Indiana to pass
FINRA examinations unless certain exceptions apply. Provides that
under certain circumstances an agent of a broker-dealer or an
investment adviser representative may have the validity of the
individual's FINRA qualifying examinations extended. Requires an
investment adviser representative to participate in a continuing
education program.
Effective: July 1, 2025.
Heaton
January 21, 2025, read first time and referred to Committee on Financial Institutions.
2025 IN 1545—LS 7705/DI 154 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1545
A BILL FOR AN ACT to amend the Indiana Code concerning
business and other associations.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 23-19-4-6, AS AMENDED BY P.L.114-2010,
2 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 6. (a) A person shall register as a broker-dealer,
4 agent, investment adviser, or investment adviser representative by
5 filing an application and a consent to service of process complying with
6 IC 23-19-6-11, satisfying the examination requirements of
7 IC 23-19-4.3, and paying the fee specified in section 10 of this chapter
8 and any reasonable fees charged by the designee of the commissioner
9 for processing the filing. The application must contain:
10 (1) the information or record required for the filing of a uniform
11 application; and
12 (2) upon request by the commissioner, any other financial or other
13 information or record that the commissioner determines is
14 appropriate.
15 (b) If the information or record contained in an application filed
16 under subsection (a) is or becomes inaccurate or incomplete in a
17 material respect, the registrant shall promptly file a correcting
2025 IN 1545—LS 7705/DI 154 2
1 amendment.
2 (c) At the time of application for an initial registration as an
3 investment adviser representative under this article, the commissioner
4 shall require each applicant to submit fingerprints for a national
5 criminal history background check (as defined in IC 10-13-3-12) by the
6 Federal Bureau of Investigation, for use by the commissioner in
7 determining whether the applicant should be denied registration under
8 this chapter for any reason set forth in section 12(d) of this chapter. The
9 applicant shall pay any fees or costs associated with the fingerprints
10 and background check required under this subsection.
11 (d) If an order is not in effect and a proceeding is not pending under
12 section 12 of this chapter, registration becomes effective at noon on the
13 forty-fifth day after a completed application is filed, unless the
14 registration is denied. A rule adopted or order issued under this article
15 may set an earlier effective date or may defer the effective date until
16 noon on the forty-fifth day after the filing of any amendment
17 completing the application.
18 (e) A registration is effective until midnight on December 31 of the
19 year for which the application for registration is filed. Unless an order
20 is in effect under section 12 of this chapter, a registration may be
21 automatically renewed each year by filing such records as are required
22 by rule adopted or order issued under this article, by paying the fee
23 specified in section 10 of this chapter, and by paying costs charged by
24 the designee of the commissioner for processing the filings.
25 (f) A rule adopted or order issued under this article may impose
26 other conditions, not inconsistent with the National Securities Markets
27 Improvement Act of 1996. An order issued under this article may
28 waive, in whole or in part, specific requirements in connection with
29 registration as are in the public interest and for the protection of
30 investors.
31 SECTION 2. IC 23-19-4-11, AS AMENDED BY P.L.1-2010,
32 SECTION 94, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 JULY 1, 2025]: Sec. 11. (a) Subject to Section 15(h) of the Securities
34 Exchange Act of 1934 (15 U.S.C. 78o(h)) or Section 222 of the
35 Investment Advisers Act of 1940 (15 U.S.C. 80b-18a), a rule adopted
36 or order issued under this article may establish minimum financial
37 requirements for broker-dealers registered or required to be registered
38 under this article and investment advisers registered or required to be
39 registered under this article.
40 (b) Subject to Section 15(h) of the Securities Exchange Act of 1934
41 (15 U.S.C. 78o(h)) or Section 222(b) of the Investment Advisers Act
42 of 1940 (15 U.S.C. 80b-18a(b)), a broker-dealer registered or required
2025 IN 1545—LS 7705/DI 154 3
1 to be registered under this article and an investment adviser registered
2 or required to be registered under this article shall file such financial
3 reports as are required by a rule adopted or order issued under this
4 article. If the information contained in a record filed under this
5 subsection is or becomes inaccurate or incomplete in a material
6 respect, the registrant shall promptly file a correcting amendment.
7 (c) Subject to Section 15(h) of the Securities Exchange Act of 1934
8 (15 U.S.C. 78o(h)) or Section 222 of the Investment Advisers Act of
9 1940 (15 U.S.C. 80b-18a):
10 (1) a broker-dealer registered or required to be registered under
11 this article and an investment adviser registered or required to be
12 registered under this article shall make and maintain the accounts,
13 correspondence, memoranda, papers, books, and other records
14 required by rule adopted or order issued under this article;
15 (2) broker-dealer records required to be maintained under
16 subdivision (1) may be maintained in any form of data storage
17 acceptable under Section 17(a) of the Securities Exchange Act of
18 1934 (15 U.S.C. 78q(a)) if they are readily accessible to the
19 commissioner; and
20 (3) investment adviser records required to be maintained under
21 subdivision (1) may be maintained in any form of data storage
22 required by rule adopted or order issued under this article.
23 (d) The records of a broker-dealer registered or required to be
24 registered under this article and of an investment adviser registered or
25 required to be registered under this article are subject to such
26 reasonable periodic, special, or other audits or inspections by a
27 representative of the commissioner, within or outside this state, as the
28 commissioner considers necessary or appropriate in the public interest
29 and for the protection of investors. An audit or inspection may be made
30 at any time and without prior notice. The commissioner may copy, and
31 remove for audit or inspection copies of, all records the commissioner
32 reasonably considers necessary or appropriate to conduct the audit or
33 inspection. The commissioner may assess a reasonable charge for
34 conducting an audit or inspection under this subsection.
35 (e) Subject to Section 15(h) of the Securities Exchange Act of 1934
36 (15 U.S.C. 78o(h)) or Section 222 of the Investment Advisers Act of
37 1940 (15 U.S.C. 80b-18a), a rule adopted or order issued under this
38 article may require a broker-dealer or investment adviser that has
39 custody of or discretionary authority over funds or securities of a
40 customer or client to obtain insurance or post a bond or other
41 satisfactory form of security in an amount not to exceed fifty thousand
42 dollars ($50,000). The commissioner may determine the requirements
2025 IN 1545—LS 7705/DI 154 4
1 of the insurance, bond, or other satisfactory form of security. Insurance
2 or a bond or other satisfactory form of security may not be required of
3 a broker-dealer registered under this article whose net capital exceeds,
4 or of an investment adviser registered under this article whose
5 minimum financial requirements exceed, the amounts required by rule
6 or order under this article. The insurance, bond, or other satisfactory
7 form of security must permit an action by a person to enforce any
8 liability on the insurance, bond, or other satisfactory form of security
9 if instituted within the time limitations in IC 23-19-5-9(g).
10 (f) Subject to Section 15(h) of the Securities Exchange Act of 1934
11 (15 U.S.C. 78o(h)) or Section 222 of the Investment Advisers Act of
12 1940 (15 U.S.C. 80b-18a), an agent may not have custody of funds or
13 securities of a customer except under the supervision of a broker-dealer
14 and an investment adviser representative may not have custody of
15 funds or securities of a client except under the supervision of an
16 investment adviser or a federal covered investment adviser. A rule
17 adopted or order issued under this article may prohibit, limit, or impose
18 conditions on a broker-dealer regarding custody of funds or securities
19 of a customer and on an investment adviser regarding custody of
20 securities or funds of a client.
21 (g) With respect to an investment adviser registered or required to
22 be registered under this article, a rule adopted or order issued under
23 this article may require that information or other records be furnished
24 or disseminated to clients or prospective clients in this state as
25 necessary or appropriate in the public interest and for the protection of
26 investors and advisory clients.
27 (h) A rule adopted or order issued under this article may require an
28 individual registered under section 2 or 4 of this chapter to participate
29 in a continuing education program approved by the Securities and
30 Exchange Commission and administered by a self-regulatory
31 organization or, in the absence of such a program, a rule adopted or
32 order issued under this article may require continuing education for an
33 individual registered under section 4 of this chapter.
34 (i) (h) Subject to section 11.5 of this chapter, the commissioner may
35 annually select as many as twenty-five percent (25%) of all Indiana
36 home and branch offices of registered broker-dealers for completion of
37 compliance reports. Subject to section 11.5 of this chapter, each
38 broker-dealer office that is selected shall file its compliance report
39 according to rules adopted by the commissioner under this article not
40 later than forty-five (45) days after being notified of selection under
41 this subsection. No charges or other examination fees may be assessed
42 against a registered broker-dealer as a result of the examination of a
2025 IN 1545—LS 7705/DI 154 5
1 compliance report filed under this subsection unless the examination
2 results in an investigation or examination made under IC 23-19-6-2(a).
3 SECTION 3. IC 23-19-4-11.5, AS ADDED BY P.L.149-2009,
4 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2025]: Sec. 11.5. (a) As used in this section, "office of
6 supervisory jurisdiction" has the meaning set forth in the National
7 Association of Securities Dealers Conduct Rule 3010(g) (as in effect
8 on January 1, 2009).
9 (b) A broker-dealer registered or required to be registered under this
10 article may not be selected for completion of a compliance report under
11 section 11(i) 11(h) of this chapter in consecutive years unless the
12 commissioner has reason to believe that the broker-dealer has
13 committed a violation of this article.
14 (c) The commissioner may not select for completion of a
15 compliance report under section 11(i) 11(h) of this chapter any office
16 that:
17 (1) reports to an office of supervisory jurisdiction located within
18 Indiana;
19 (2) reflects the address of the office of supervisory jurisdiction
20 described in subdivision (1) on all of the office's business cards,
21 stationery, advertisements, and other communications to the
22 public; and
23 (3) is included in the definition of branch office under the
24 National Association of Securities Dealers Conduct Rule 3010(g)
25 because the office:
26 (A) handles funds or securities as described under the National
27 Association of Securities Dealers Conduct Rule
28 3010(g)(2)(A)(ii)(c); or
29 (B) uses the residential address on all business cards,
30 stationery, advertisements, or other communications to the
31 public under the National Association of Securities Dealers
32 Conduct Rule 3010(g)(2)(A)(ii)(d).
33 SECTION 4. IC 23-19-4-12, AS AMENDED BY P.L.205-2021,
34 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2025]: Sec. 12. (a) If the commissioner finds that the order is
36 in the public interest and subsection (d) authorizes the action, an order
37 issued under this article may deny an application, or may condition or
38 limit registration, of an applicant to be a broker-dealer, agent,
39 investment adviser, or investment adviser representative and, if the
40 applicant is a broker-dealer or investment adviser, of a partner, officer,
41 director, or person having a similar status or performing similar
42 functions, or a person directly or indirectly in control of the
2025 IN 1545—LS 7705/DI 154 6
1 broker-dealer or investment adviser.
2 (b) If the commissioner finds that the order is in the public interest
3 and subsection (d) authorizes the action, an order issued under this
4 article may revoke, suspend, condition, or limit the registration of a
5 registrant and, if the registrant is a broker-dealer or investment adviser,
6 of a partner, officer, director, or person having a similar status or
7 performing similar functions, or a person directly or indirectly in
8 control of the broker-dealer or investment adviser. However, the
9 commissioner may not:
10 (1) institute a revocation or suspension proceeding under this
11 subsection based on an order issued under a law of another state
12 that is reported to the commissioner or a designee of the
13 commissioner more than one (1) year after the date of the order on
14 which it is based; or
15 (2) under subsection (d)(5)(A) and (d)(5)(B), issue an order on
16 the basis of an order issued under the securities act of another
17 state unless the other order was based on conduct for which
18 subsection (d) would authorize the action had the conduct
19 occurred in this state.
20 (c) If the commissioner finds that the order is in the public interest
21 and subsection (d)(1), (d)(2), (d)(3), (d)(4), (d)(5), (d)(6), (d)(8), (d)(9),
22 (d)(11), (d)(12), or (d)(13) authorizes the action, an order under this
23 article may censure, impose a bar, or impose a civil penalty in an
24 amount not to exceed a maximum of ten thousand dollars ($10,000) per
25 violation on a registrant, and, if the registrant is a broker-dealer or
26 investment adviser, a partner, officer, director, or person having a
27 similar status or performing similar functions, or a person directly or
28 indirectly in control of the broker-dealer or investment adviser.
29 (d) A person may be disciplined under subsections (a) through (c)
30 if the person:
31 (1) has filed an application for registration in this state under this
32 article or the predecessor act within the previous ten (10) years,
33 which, as of the effective date of registration or as of any date
34 after filing in the case of an order denying effectiveness, was
35 incomplete in any material respect or contained a statement that,
36 in light of the circumstances under which it was made, was false
37 or misleading with respect to a material fact;
38 (2) knowingly violated or knowingly failed to comply with this
39 article or the predecessor act or a rule adopted or order issued
40 under this article or the predecessor act within the previous ten
41 (10) years;
42 (3) has been convicted of a felony or within the previous ten (10)
2025 IN 1545—LS 7705/DI 154 7
1 years has been convicted of a misdemeanor involving a security,
2 a commodity future or option contract, or an aspect of a business
3 involving securities, commodities, investments, franchises,
4 insurance, banking, or finance;
5 (4) is enjoined or restrained by a court with jurisdiction in an
6 action instituted by the commissioner under this article or the
7 predecessor act, a state, the Securities and Exchange Commission,
8 or the United States from engaging in or continuing an act,
9 practice, or course of business involving an aspect of a business
10 involving securities, commodities, investments, franchises,
11 insurance, banking, or finance;
12 (5) is the subject of an order, issued after notice and opportunity
13 for hearing, by:
14 (A) the securities, depository institution, insurance, or other
15 financial services regulator of a state or by the Securities and
16 Exchange Commission or other federal agency denying,
17 revoking, barring, or suspending registration as a
18 broker-dealer, agent, investment adviser, federal covered
19 investment adviser, or investment adviser representative;
20 (B) the securities regulator of a state or the Securities and
21 Exchange Commission against a broker-dealer, agent,
22 investment adviser, investment adviser representative, or
23 federal covered investment adviser;
24 (C) the Securities and Exchange Commission or a
25 self-regulatory organization suspending or expelling the
26 registrant from membership in the self-regulatory
27 organization;
28 (D) a court adjudicating a United States Postal Service fraud
29 order;
30 (E) the insurance regulator of a state denying, suspending, or
31 revoking registration as an insurance agent;
32 (F) a depository institution regulator suspending or barring the
33 person from the depository institution business; or
34 (G) any state regulatory body or organization governing real
35 estate brokers or sales persons denying, suspending, or
36 revoking a person's registration or license in the real estate
37 industry;
38 (6) is the subject of an adjudication or determination, after notice
39 and opportunity for hearing, by the Securities and Exchange
40 Commission, the Commodity Futures Trading Commission, the
41 Federal Trade Commission, a federal depository institution
42 regulator, or a depository institution, insurance, or other financial
2025 IN 1545—LS 7705/DI 154 8
1 services regulator of a state that the person willfully violated the
2 Securities Act of 1933, the Securities Exchange Act of 1934, the
3 Investment Advisers Act of 1940, the Investment Company Act
4 of 1940, or the Commodity Exchange Act, the securities or
5 commodities law of a state, or a federal or state law under which
6 a business involving investments, franchises, insurance, banking,
7 or finance is regulated;
8 (7) is insolvent, either because the person's liabilities exceed the
9 person's assets or because the person cannot meet the person's
10 obligations as they mature, but the commissioner may not enter an
11 order against an applicant or registrant under this subdivision
12 without a finding of insolvency as to the applicant or registrant;
13 (8) refuses to allow or otherwise impedes the commissioner from
14 conducting an audit or inspection under section 11(d) of this
15 chapter or refuses access to a registrant's office to conduct an
16 audit or inspection under section 11(d) of this chapter;
17 (9) has failed to reasonably supervise an agent, investment adviser
18 representative, or other individual, if the agent, investment
19 adviser representative, or other individual was subject to the
20 person's supervision and committed a violation of this article or
21 the predecessor act or a rule adopted or order issued under this
22 article or the predecessor act within the previous ten (10) years;
23 (10) has not paid the proper filing fee within thirty (30) days after
24 having been notified by the commissioner of a deficiency, but the
25 commissioner shall vacate an order under this subdivision when
26 the deficiency is corrected;
27 (11) after notice and opportunity for a hearing, has been found
28 within the previous ten (10) years:
29 (A) by a court with jurisdiction to have willfully violated the
30 laws of a foreign jurisdiction under which the business of
31 securities, commodities, investment, franchises, insurance,
32 banking, or finance is regulated;
33 (B) to have been the subject of an order of a securities
34 regulator of a foreign jurisdiction denying, revoking, or
35 suspending the right to engage in the business of securities as
36 a broker-dealer, agent, investment adviser, investment adviser
37 representative, or similar person; or
38 (C) to have been suspended or expelled from membership by
39 or participation in a securities exchange or securities
40 association operating under the securities laws of a foreign
41 jurisdiction;
42 (12) is the subject of a cease and desist order issued by the
2025 IN 1545—LS 7705/DI 154 9
1 Securities and Exchange Commission or issued under the
2 securities, commodities, investment, franchise, banking, finance,
3 or insurance laws of a state;
4 (13) has engaged in dishonest or unethical practices in the
5 securities, commodities, investment, franchise, banking, finance,
6 or insurance business within the previous ten (10) years;
7 (14) is not qualified on the basis of factors such as training,
8 experience, and knowledge of the securities business. However,
9 in the case of an application by an agent for a broker-dealer that
10 is a member of a self-regulatory organization or by an individual
11 for registration as an investment adviser representative, a denial
12 order may not be based on this subdivision if the individual has
13 successfully completed all examinations required by subsection
14 (e). The commissioner may require an applicant for registration
15 under section 2 or 4 of this chapter who has not been registered
16 in a state within the two (2) years preceding the filing of an
17 application in this state to successfully complete an examination;
18 (15) is on the most recent tax warrant list supplied to the
19 commissioner by the department of state revenue;
20 (16) is an individual who is:
21 (A) an applicant for registration as an agent for a broker-dealer
22 or as an investment adviser representative; or
23 (B) registered as an agent for a broker-dealer or as an
24 investment adviser representative;
25 and has failed to comply with a court order imposing a child
26 support obligation; or
27 (17) fails to comply with the disclosure requirements set forth
28 under IC 24-4.9-3.
29 (e) Subject to IC 23-19-4.3, a rule adopted or order issued under
30 this article may require that an examination, including an examination
31 developed or approved by an organization of securities regulators, be
32 successfully completed by a class of individuals or all individuals. An
33 order issued under this article may waive, in whole or in part, an
34 examination as to an individual and a rule adopted under this article
35 may waive, in whole or in part, an examination as to a class of
36 individuals if the commissioner determines that the examination is not
37 necessary or appropriate in the public interest and for the protection of
38 investors.
39 (f) The commissioner may suspend or deny an application
40 summarily; restrict, condition, limit, or suspend a registration; or
41 censure, bar, or impose a civil penalty on a registrant before final
42 determination of an administrative proceeding. Upon the issuance of
2025 IN 1545—LS 7705/DI 154 10
1 an order, the commissioner shall promptly notify each person subject
2 to the order that the order has been issued, the reasons for the action,
3 and that within fifteen (15) days after the receipt of a request in a
4 record from the person the matter will be scheduled for a hearing. If a
5 hearing is not requested and none is ordered by the commissioner
6 within thirty (30) days after the date of service of the order, the order
7 becomes final by operation of law. If a hearing is requested or ordered,
8 the commissioner, after notice of and opportunity for hearing to each
9 person subject to the order, may modify or vacate the order or extend
10 the order until final determination.
11 (g) An order may not be issued under this section, except under
12 subsection (f), without:
13 (1) appropriate notice to the applicant or registrant;
14 (2) opportunity for hearing; and
15 (3) findings of fact and conclusions of law in a record.
16 (h) A person that controls, directly or indirectly, a person not in
17 compliance with this section may be disciplined by order of the
18 commissioner under subsections (a) through (c) to the same extent as
19 the noncomplying person, unless the controlling person did not know,
20 and in the exercise of reasonable care could not have known, of the
21 existence of conduct that is a ground for discipline under this section.
22 (i) The commissioner may not institute a proceeding under
23 subsection (a), (b), or (c) based solely on material facts actually known
24 by the commissioner unless an investigation or the proceeding is
25 instituted within one (1) year after the commissioner actually acquires
26 knowledge of the material facts.
27 (j) All fines and penalties collected under this section shall be
28 deposited into the securities division enforcement account as
29 established by IC 23-19-6-1(f).
30 SECTION 5. IC 23-19-4.3 IS ADDED TO THE INDIANA CODE
31 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2025]:
33 Chapter 4.3. Examination Requirements and Continuing
34 Education
35 Sec. 1. The following definitions apply throughout this chapter:
36 (1) "Authorized provider" means a person that NASAA or its
37 designee has authorized to provide continuing education
38 content.
39 (2) "Credit" means a unit that has been designated by
40 NASAA as at least fifty (50) minutes of educational
41 instruction.
42 (3) "Ethics and professional responsibility continuing
2025 IN 1545—LS 7705/DI 154 11
1 education content" means NASAA approved investment
2 adviser representative continuing education content that
3 addresses an investment adviser representative's ethical and
4 regulatory obligations.
5 (4) "FINRA" refers to the Financial Industry Regulatory
6 Authority.
7 (5) "Home state" means the state where the principal place of
8 business of an investment adviser representative is located.
9 (6) "NASAA" refers to the North American Securities
10 Administrators Association or a committee designated by its
11 board of directors.
12 (7) "Products and practice continuing education content"
13 means NASAA approved investment adviser continuing
14 education content that addresses an investment adviser
15 representative's continuing skills and knowledge regarding:
16 (A) financial products;
17 (B) investment features; and
18 (C) practices;
19 in the investment advisory industry.
20 (8) "Reporting Period" means one (1) twelve (12) month
21 period as determined by NASAA.
22 (9) "Series 7 examination" means the general securities
23 representative examination administered by FINRA.
24 (10) "Series 63 examination" means the uniform securities
25 agent state law examination administered by FINRA.
26 (11) "Series 65 examination" means the uniform investment
27 adviser law examination administered by FINRA.
28 (12) "Series 66 examination" means the uniform combined
29 state law examination administered by FINRA.
30 Sec. 2. (a) This section applies to an applicant seeking to register
31 as an agent of a broker-dealer under IC 23-19-4.
32 (b) Except as provided in subsections (c) through (f), an
33 applicant must pass:
34 (1) the Series 63 or Series 66 examination; and
35 (2) any other examination required by the commissioner;
36 within two (2) years of the date of application.
37 (c) If an applicant registers as an agent in any other state in the
38 two (2) years before the date of application, the applicant is not
39 required to take the examinations described in subsection (b).
40 (d) An applicant is in compliance with the examination
41 requirement in subsection (b) if the:
42 (1) applicant has not been registered as an agent in any state
2025 IN 1545—LS 7705/DI 154 12
1 for more than two (2) years but less than five (5) years;
2 (2) applicant is a participant in the Maintaining Qualifications
3 Program administered by FINRA;
4 (3) applicant's FINRA qualifying examinations are valid
5 through the applicant's participation in the Maintaining
6 Qualifications Program administered by FINRA; and
7 (4) applicant is a participant in the Examination Validity
8 Extension Program for agents of broker-dealers administered
9 by NASAA within two (2) years of agent registration
10 termination.
11 (e) An applicant is in compliance with the examination
12 requirement in subsection (b)(2) if the:
13 (1) applicant has not been registered as an agent in any state
14 for more than two (2) years but less than five (5) years;
15 (2) applicant is a participant in the Maintaining Qualifications
16 Program administered by FINRA; and
17 (3) applicant's FINRA qualifying examinations are valid
18 through the individual's participation in the Maintaining
19 Qualifications Program administered by FINRA.
20 (f) The commissioner may waive any of the examination
21 requirements under subsection (b).
22 (g) For purposes of investment adviser representative
23 registration, the validity of an applicant's Series 66 examination
24 may not be extended through participation in the Maintaining
25 Qualifications Program administered by FINRA.
26 Sec. 3. (a) This section applies to an applicant seeking to register
27 as an investment adviser representative.
28 (b) Except as provided in subsections (c) through (f), an
29 applicant under this section must pass the:
30 (1) Series 65 examination within two (2) years of the date of
31 application;
32 (2) Series 66 examination within two (2) years of the date of
33 application;
34 (3) Series 7 examination within two (2) years of the date of
35 application; and
36 (4) Securities Industry Essential Examination within four (4)
37 years of the date of application.
38 (c) If:
39 (1) an applicant under this section has been designated as:
40 (A) a Certified Financial Planner;
41 (B) a Chartered Financial Consultant;
42 (C) a Masters of Science and Financial Services;
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1 (D) a Chartered Financial Analyst;
2 (E) a Personal Financial Specialist;
3 (F) a Chartered Investment Counselor; or
4 (G) any other designation that the commissioner considers
5 to be equivalent to the Series 65 examination; and
6 (2) the applicant's designation in subdivision (1) is current
7 and in good standing with the organization that awarded the
8 designation;
9 the examination requirement in subsection (b) does not apply.
10 (d) If an applicant registers as an investment adviser
11 representative in any other state in the two (2) years before the
12 date of application, the applicant is not required to take the
13 examinations required by section (b) to be eligible for registration.
14 (e) An applicant is in compliance with the examination
15 requirement in subsection (b)(1) and (b)(2) if the:
16 (1) applicant has not been registered as an investment adviser
17 representative in any state for more than two (2) years but
18 less than five (5) years;
19 (2) applicant is a participant in the Maintaining Qualifications
20 Program administered by FINRA;
21 (3) applicant's FINRA qualifying examinations are valid
22 through the individual's participation in the Maintaining
23 Qualifications Program administered by FINRA; and
24 (4) applicant is a participant in the Examination Validity
25 Extension Program for investment adviser representatives
26 administered by NASAA within two (2) years of agent
27 registration termination.
28 (f) An applicant is in compliance with the examination
29 requirement in subsection (b)(3) and (b)(4) if the:
30 (1) applicant has not been registered as an investment adviser
31 representative in any state for more than two (2) years but
32 less than five (5) years;
33 (2) applicant is a participant in the Maintaining Qualifications
34 Program administered by FINRA; and
35 (3) applicant's FINRA qualifying examinations are valid
36 through the individual's participation in the Maintaining
37 Qualifications Program administered by FINRA.
38 (g) The commissioner may waive any of the examination
39 requirements under subsection (b).
40 Sec. 4. (a) An individual who terminates the individual's
41 registration as an investment adviser representative may have the
42 validity of the individual's Series 65 examination and the
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1 investment adviser representative portion of the Series 66
2 examination extended indefinitely if the individual meets all of the
3 following requirements:
4 (1) The individual previously passed the examination for
5 which the individual seeks to maintain validity under this
6 subsection.
7 (2) The individual was registered as an investment adviser
8 representative for at least one (1) year immediately preceding
9 the termination of the investment adviser representative
10 registration.
11 (3) The individual was not subject to a statutory
12 disqualification as defined in section 3(a)(39) of the Securities
13 Exchange Act of 1934.
14 (4) The individual does not have a deficiency under the
15 investment adviser representative continuing education
16 program described in section 6 of this chapter at the time the
17 individual terminates the individual's investment adviser
18 representative registration.
19 (5) The individual completes annually on or before December
20 31 of each calendar year that elapses after the individual's
21 investment adviser representative registration is terminated,
22 regardless of when the individual elects to participate in the
23 Examination Validity Extension Program for investment
24 adviser representatives administered by NASAA:
25 (A) six (6) credits of ethics and professional responsibility
26 continuing education content offered by an authorized
27 provider, including at least three (3) hours covering the
28 topic of ethics; and
29 (B) six (6) credits of products and practice continuing
30 education content offered by an authorized provider.
31 (b) An individual who complies with the Maintaining
32 Qualification Program administered by FINRA is in compliance
33 with subsection (a)(5)(B).
34 Sec. 5. An individual's Series 65 examination and the investment
35 adviser representative portion of the Series 66 examination is valid
36 for a period of five (5) years after the individual terminates the
37 individual's registration as an investment adviser representative,
38 regardless of whether the individual has been employed by or
39 associated with an investment adviser or federal covered
40 investment adviser.
41 Sec. 6. (a) Except as provided in subsections (b) and (c), an
42 investment adviser representative registered under IC 23-19-4
2025 IN 1545—LS 7705/DI 154 15
1 shall complete the following investment adviser representative
2 continuing education requirements each reporting period:
3 (1) Six (6) credits of investment adviser representative ethics
4 and professional responsibility continuing education content
5 offered by an authorized provider, with at least three (3)
6 hours covering the topic of ethics.
7 (2) Six (6) credits of investment adviser representative
8 products and practice continuing education content offered by
9 an authorized provider.
10 (b) An investment adviser representative who is registered as an
11 agent of a FINRA member broker-dealer and complies with
12 FINRA's continuing education requirements is in compliance with
13 subsection (a)(2) for each applicable reporting period if the FINRA
14 continuing education content meets all of the following criteria as
15 determined by NASAA:
16 (1) The content of the program focuses on:
17 (A) compliance;
18 (B) regulatory;
19 (C) ethical; and
20 (D) sales practice;
21 standards.
22 (2) The content of the program is derived from:
23 (A) state and federal investment advisory statutes;
24 (B) rules and regulations;
25 (C) securities industry rules and regulations; and
26 (D) accepted standards and practices in the financial
27 services industry.
28 (3) The program requires that its participants demonstrate
29 proficiency in the subject matter of the educational materials.
30 (c) If an investment adviser representative who holds a
31 designation that qualifies the individual for an examination waiver
32 under section 3(c) of this chapter completes continuing education
33 content as a condition of maintaining the individual's designation,
34 the individual complies with subsection (a) if the continuing
35 education content:
36 (1) completed during the relevant reporting period by the
37 investment adviser representative is mandatory to maintain
38 the designation; and
39 (2) provided by the designating organization during the
40 relevant reporting period is NASAA approved investment
41 adviser representative continuing education content.
42 (d) An investment adviser representative who fails to comply
2025 IN 1545—LS 7705/DI 154 16
1 with this section by the end of a reporting period will renew as "CE
2 Inactive" at the close of the calendar year until the investment
3 adviser representative completes and reports all required
4 investment adviser representative continuing education credits. An
5 investment adviser representative who is "CE Inactive" at the
6 close of the next calendar year is not eligible for investment adviser
7 representative registration or renewal of an investment adviser
8 representative registration under IC 23-19-4.
9 Sec. 7. If an investment adviser representative's registration is
10 terminated, the individual shall complete the investment adviser
11 representative continuing education requirements for all reporting
12 periods that occurred between the time that the investment adviser
13 representative's registration is terminated and when the individual
14 became registered again under IC 23-19-4 unless the investment
15 adviser representative:
16 (1) passes the applicable examination described in section 3(b)
17 of this chapter; or
18 (2) receives an examination waiver under section 3(c) through
19 3(e) of this chapter.
20 Sec. 8. An authorized provider shall report the completion of an
21 investment adviser representative's applicable investment adviser
22 representative continuing education requirements to the
23 commissioner not more than thirty (30) days after the investment
24 adviser representative completes the applicable investment adviser
25 representative continuing education requirements.
26 Sec. 9. An investment adviser representative registered or
27 required to be registered in Indiana who is registered as an
28 investment adviser representative in the individual's home state
29 satisfies the requirements of section 6(a) of this chapter if:
30 (1) the investment adviser representative's home state has
31 continuing education requirements that are at least as
32 stringent as the continuing education requirements of this
33 chapter; and
34 (2) the investment adviser representative is in compliance
35 with the home state's investment adviser representative
36 continuing education requirements.
37 Sec. 10. An investment adviser representative who completes
38 more than twelve (12) credits of continuing education for the
39 reporting period may not carry forward the excess credits of
40 continuing education.
41 Sec. 11. The commissioner may waive any of the requirements
42 in sections 6 through 10 of this chapter.
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1 SECTION 6. [EFFECTIVE JULY 1, 2025] (a) The securities
2 division of the office of the secretary of state shall amend its
3 administrative rules to conform with IC 23-19-4.3, as added by this
4 act.
5 (b) This SECTION expires July 1, 2028.
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