IndianaHB 1336Second Regular Session 124th General Assembly (2026)House

Securities and investment adviser representatives.

Sponsored By: Martin Carbaugh (Republican)

Signed by Governor

Summary

Exempts a merger and acquisition broker from registering as a broker-dealer under certain circumstances. 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.

financial institutionsthe senateinsurance and financial institutions

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 1 benefits, 0 costs, 5 mixed.

Adviser representatives get education flexibility

Beginning July 1, 2026, Indiana accepts home-state education for adviser representatives registered there when its requirements are at least as strict. Representatives must comply with those home-state requirements. The commissioner can also waive covered education, reporting, home-state recognition, and credit carryforward requirements. No representative receives an automatic waiver.

Adviser applicants get exams and alternatives

Beginning July 1, 2026, adviser representative applicants generally need Series 65, or both Series 7 and Series 66, passed within two years. Without a Series 65 taken in that period, they also need the Securities Industry Essentials exam passed within four years. Current designations in good standing, including CFP, ChFC, CFA, Personal Financial Specialist, CIMA, and approved equivalents, provide an exemption. Applicants unregistered everywhere for more than two but less than five years have a FINRA qualification-program alternative. That route requires valid qualifying FINRA exams and NASAA exam-extension participation within two years after termination; the commissioner can also waive exams.

Adviser representatives face yearly education rules

Beginning July 1, 2026, adviser representatives need 12 credits per reporting period: six ethics and professional responsibility, and six products and practice. At least three hours must cover ethics; extra credits cannot carry forward. Qualifying FINRA education can cover products and practice, and mandatory designation education can count when NASAA-approved and completed that period. Missing education leads to “CE Inactive” status at year-end until all required credits are completed and reported. Remaining inactive through the next calendar year blocks registration or renewal. The law also repeals a separate older authority to order continuing education, without eliminating these new requirements.

Private company brokers get registration exemption

Beginning July 1, 2026, qualifying private-company sale brokers are exempt from Indiana broker-dealer registration. The exemption excludes holding deal funds or securities, certain public offerings, and shell-company deals outside business combinations. Brokers also cannot form buyer groups, transfer ownership to passive buyers, or bind parties to a deal. Financing activities are limited; help obtaining unaffiliated third-party financing requires compliance with law and written disclosure of compensation. Representing both sides requires written disclosure and both parties’ written consent. Brokers and covered associates cannot be barred or suspended from broker-dealer work.

Returning advisers can preserve exam validity

Beginning July 1, 2026, former adviser representatives can extend Series 65 or the adviser portion of Series 66 validity for five years. They need one year of registration immediately before leaving, no statutory disqualification, and no education deficiency at departure. Each year after leaving, they must finish six ethics and professional responsibility credits, including three ethics hours, plus six products and practice credits by December 31. FINRA’s Maintaining Qualifications Program satisfies the products and practice requirement. Returning representatives must complete education for every missed reporting period unless they pass the applicable exam or receive an exam waiver.

Securities professionals face updated exam rules

Beginning July 1, 2026, securities registration applicants must meet the exam rules that apply to their registration type. Broker-dealer agents generally need Series 63 or Series 66, plus any commissioner-required exams, passed within the previous two years. Agents unregistered in every state for more than two but less than five years have a program-based alternative. It requires FINRA’s Maintaining Qualifications Program, valid qualifying FINRA exams, and NASAA exam-extension participation within two years after registration ends. The commissioner can waive exam requirements.

Sponsors & Cosponsors

Sponsor

  • Martin Carbaugh

    Republican • House

Cosponsors

  • Scott Baldwin

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 228 • No: 0

House vote • 2/19/2026

House concurred with Senate amendments

Yes: 94 • No: 0

Senate vote • 2/17/2026

Third reading: passed

Yes: 45 • No: 0

House vote • 1/28/2026

Third reading: passed

Yes: 89 • No: 0

Actions Timeline

  1. Signed by the Governor

    2/26/2026House
  2. Public Law 41

    2/26/2026House
  3. Signed by the President of the Senate

    2/25/2026Senate
  4. Signed by the President Pro Tempore

    2/24/2026Senate
  5. Signed by the Speaker

    2/23/2026House
  6. House concurred with Senate amendments; Roll Call 298: yeas 94, nays 0

    2/19/2026House
  7. Motion to concur filed

    2/18/2026House
  8. Returned to the House with amendments

    2/18/2026Senate
  9. Third reading: passed; Roll Call 190: yeas 45, nays 0

    2/17/2026Senate
  10. Second reading: amended, ordered engrossed

    2/16/2026Senate
  11. Amendment #1 (Baldwin) prevailed; voice vote

    2/16/2026Senate
  12. Committee report: do pass, adopted

    2/12/2026Senate
  13. First reading: referred to Committee on Insurance and Financial Institutions

    2/2/2026Senate
  14. Referred to the Senate

    1/29/2026House
  15. Third reading: passed; Roll Call 123: yeas 89, nays 0

    1/28/2026House
  16. Senate sponsor: Senator Baldwin

    1/28/2026House
  17. Second reading: ordered engrossed

    1/22/2026House
  18. Committee report: do pass, adopted

    1/20/2026House
  19. Authored by Representative Carbaugh

    1/6/2026House
  20. First 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)

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