Ohio securities regulator defends broad licensing, cites enforcement and investor recovery work

Andrea Seit, commissioner of the Ohio Department of Commerce Division of Securities, summarized the division's licensing universe and enforcement work during a committee review.

"The division's mission is to administer and enforce the Ohio Securities Act," Seit said, referring to the statute and noting the division's authority is set out in what her testimony called "Chapter 17 oh 7 of the Ohio Revised Code." She listed seven license types, described reciprocity for federally registered firms, and said the office oversees more than 267,000 financial professionals.

Seit provided enforcement figures: the division processed over 9,000 filings last calendar year, referred 20 criminal matters that resulted in five convictions, and established an investor recovery fund with more than $2,000,000 in restitution to victims, of which about $309,000 was awarded last year.

Committee members asked whether the BWC investment officer must hold a license; Seit said state-run pension investment officers are licensed and Ohio is somewhat unique in that requirement. She also explained broker-dealer firm licenses are corporate filings that require more review and carry higher fees than individual salesperson licenses.

On complaints and prosecutions, Seit said the division receives complaints daily, uses an exam team for targeted on-site reviews, and works with the Ohio Attorney General's office for administrative and civil actions and with prosecutors on criminal referrals.

The committee did not vote on any statutory changes; Seit asked for continued support of the division's licensing structure.