LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7705 NOTE PREPARED: Jan 10, 2025
BILL NUMBER: HB 1545 BILL AMENDED:
SUBJECT: Investment Adviser Representatives and Agents.
FIRST AUTHOR: Rep. Heaton BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: This bill 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. The bill requires an applicant seeking to register as an investment adviser representative in Indiana
to pass FINRA examinations unless certain exceptions apply. It also 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. The bill also requires an investment adviser
representative to participate in a continuing education program.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The provisions of the bill are expected to have a minimal impact on
the workload of the Secretary of State.
Explanation of State Revenues: Summary - This bill could impact revenue the Loan Broker Regulation
Account receives from filing fees for investment adviser representatives. Any impact is indeterminable but
expected to be minimal.
Additional Information - This bill primarily codifies existing practice concerning examination passage and
requirements to operate as a broker-dealer agents and investment adviser representatives. The bill does
however codify two new practices; (1) continuing education requirements for investment adviser
representatives and (2) the ability of the Commissioner of the Securities Division to waive certain
requirements to obtain licensure as an investment adviser representative.
The fee for a new and renewal investment adviser representative license is $25 and revenue received from
filing fees is deposited in the Loan Broker Regulation Account. Implementing continuing education
requirements could delay or decrease renewal fee revenue deposited in the Loan Broker Regulation Account.
Allowing the Securities Commissioner to waive certain requirements to apply for a investment adviser
representative license could increase revenue received from license fees. The bill’s net impact on revenue
to the Loan Broker Regulation Account is indeterminable, but expected to be minimal. [For FY 2024, the
HB 1545 1 Loan Broker Regulation Account received approximately $234,000 in revenue.]
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Secretary of State.
Local Agencies Affected:
Information Sources: https://securities.sos.in.gov/general-information/broker-dealer;
https://securities.sos.in.gov/general-information/investment-adviser.
Fiscal Analyst: Bill Brumbach, 317-232-9559.
HB 1545 2