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Committee approves bill to tweak securities registration, extend IAR exam validity and add CE requirement
Summary
The House Financial Institutions Committee voted 10–0 to pass House Bill 13 36, which exempts certain M&A brokers from broker-dealer registration, allows a five-year exam-extension option for investment-adviser representatives for an annual $35 fee, and requires continuing education for IARs, the securities commissioner said.
Rep. Carball introduced House Bill 13 36, describing three main provisions: an exemption from broker-dealer registration for certain mergers-and-acquisition brokers; an option to extend the validity of investment-adviser representative examination status for up to five years; and a new continuing-education requirement for investment-adviser representatives.
Marie Caseta, securities commissioner for the State of Indiana, testified in support and described how the bill aligns with existing federal and multistate practices. Caseta said the M&A-broker exemption mirrors an SEC approach and applies to transactions involving eligible privately held companies and noted the bill sets size thresholds for eligibility. In testimony she cited revenue- and earnings-related thresholds in the bill’s language, saying eligible companies must meet the bill’s conditions that she summarized as “less than $25,000,000” for a depreciation/amortization-related figure and “less than $250,000,000” in gross revenues.
On the exam-extension provision, Caseta said registrants could pay a $35 annual fee to maintain examination status for up to five years, which would allow people who stepped away from the industry for reasons such as illness or caregiving to return without repeating exams immediately. She described the continuing-education requirement for investment-adviser representatives as a move to align Indiana with rules adopted in other jurisdictions.
Committee members asked clarifying questions about the bill’s deregulatory elements and the CE requirement; Caseta confirmed the securities division would update administrative rules and that the bill’s CE provision is the primary new regulatory requirement in an otherwise deregulatory measure.
A committee member moved to pass the bill. The committee then called the roll and recorded a 10–0 vote in favor with several members recorded as excused. The chair announced the bill passed the committee.
The bill now moves from the committee process; committee members recorded no dissent at the hearing and the chair closed consideration of the item after the vote.
