All Roll Calls
Yes: 228 • No: 0
IndianaHB 1336Second Regular Session 124th General Assembly (2026)HouseWALLET
Securities and investment adviser representatives.
Sponsored By: Martin Carbaugh (Republican)
Became Law
financial institutionsthe senateinsurance and financial institutions
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 1 benefits, 1 costs, 3 mixed.
Stronger safeguards on client assets and records
Beginning July 1, 2026, agents and investment adviser representatives cannot hold client money or securities unless supervised by a broker-dealer or investment adviser. The regulator can add custody limits. Broker-dealers and advisers must keep required books and records, file financial reports, and may be audited; those with custody or discretion may have to carry insurance or a bond up to $50,000, and audit fees may apply. Each year, the commissioner can select up to 25% of Indiana home and branch offices for a compliance report. A firm is not picked two years in a row unless a violation is suspected, and some offices that report to an in‑state supervisory office are excluded. Selected offices must file the report within 45 days after notice; there is no fee unless it leads to an investigation.
Who must register to sell securities in Indiana
Beginning July 1, 2026, a person must register to do broker-dealer business in Indiana unless a listed exemption applies. An out-of-state broker-dealer with no Indiana office is exempt if it only deals with listed groups, such as issuers, registered broker-dealers, institutional investors, certain federal covered advisers with over $100 million, bona fide preexisting customers, or no more than three Indiana customers in 12 months. M&A brokers can be exempt, but not if they hold client funds or securities, do public offerings, work with certain shell companies, arrange tied financing without disclosures, represent both sides without written consent, help form buyer groups, transfer to passive buyers, or are barred by regulators. The commissioner can allow Canadian or other foreign broker-dealers with no Indiana office to do limited transactions with preexisting customers who are temporarily in Indiana or tied to foreign retirement plans, and can allow their agents to do the same.
Standard timing for licenses and renewals
Beginning July 1, 2026, a registration takes effect at noon on the 45th day after a complete filing unless an order or case is pending. The commissioner can set an earlier or later date. Each registration lasts until midnight on December 31. It can auto-renew if you file required records, pay the set fee, and pay processing costs, unless limited by an order.
Tougher penalties for securities violations
Beginning July 1, 2026, the commissioner can deny, limit, suspend, or revoke registrations and fine up to $10,000 per violation. Grounds include false or incomplete applications, breaking securities laws or rules, certain felonies, insolvency, failure to supervise, being on the most recent tax warrant list, and not paying court-ordered child support. All fines go to the securities division enforcement account.
New exam and training rules for advisers and agents
Beginning July 1, 2026, broker-dealer agents must pass Series 63 or 66 (and any other required exam) within two years before applying. Investment adviser representatives must pass Series 65 within two years, or Series 7 and 66 within two years; if Series 65 was not taken, the SIE must be within four years. Certain designations (like CFP, ChFC, CFA, PFS, or CIMA) can replace the exam, and the commissioner can grant waivers. IARs must complete six ethics credits (with at least three hours) and six products and practice credits each reporting period; providers report completions to FINRA within 30 days. If you miss CE, you become CE Inactive at year end; if still inactive at the end of the next year, you cannot register or renew. First-time IAR applicants must submit fingerprints for an FBI background check and pay the fees. If you leave IAR registration, you can keep Series 65 or the IAR part of Series 66 valid for up to five years if you were registered at least one year before leaving, have no disqualification, had no CE deficit, and finish the required CE by each December 31. The securities division updates its rules to match these changes by July 1, 2029.
Sponsors & Cosponsors
Sponsor
Martin Carbaugh
Republican • House
Cosponsors
Scott Baldwin
Republican • Senate
Roll Call Votes
House vote • 2/19/2026
Roll Call 298 on HB1336.04.ENGS.CON01
Yes: 94 • No: 0 • Other: 1
Senate vote • 2/17/2026
Roll Call 190 on HB1336.03.COMS
Yes: 45 • No: 0 • Other: 4
House vote • 1/28/2026
Roll Call 123 on HB1336.02.COMH
Yes: 89 • No: 0 • Other: 6
Actions Timeline
Public Law 41
2/26/2026HouseSigned by the Governor
2/26/2026HouseSigned by the President of the Senate
2/25/2026SenateSigned by the President Pro Tempore
2/24/2026SenateSigned by the Speaker
2/23/2026HouseHouse concurred with Senate amendments; Roll Call 298: yeas 94, nays 0
2/19/2026HouseMotion to concur filed
2/18/2026HouseReturned to the House with amendments
2/18/2026SenateThird reading: passed; Roll Call 190: yeas 45, nays 0
2/17/2026SenateSecond reading: amended, ordered engrossed
2/16/2026SenateAmendment #1 (Baldwin) prevailed; voice vote
2/16/2026SenateCommittee report: do pass, adopted
2/12/2026SenateFirst reading: referred to Committee on Insurance and Financial Institutions
2/2/2026SenateReferred to the Senate
1/29/2026HouseThird reading: passed; Roll Call 123: yeas 89, nays 0
1/28/2026HouseSenate sponsor: Senator Baldwin
1/28/2026HouseSecond reading: ordered engrossed
1/22/2026HouseCommittee report: do pass, adopted
1/20/2026HouseAuthored by Representative Carbaugh
1/6/2026HouseFirst reading: referred to Committee on Financial Institutions
1/6/2026House
Bill Text
Engrossed House Bill (H)
Enrolled House Bill (H)
House Bill (S)
Introduced House Bill (H)