Indiana law sets rules for private company sale brokers and advisers

Merger and acquisition brokers are exempt from broker-dealer registration when they meet the listed rules. The exemption concerns brokers arranging ownership transfers of eligible privately held companies. The exemption does not cover brokers who handle sale funds or securities, provide related financing, engage in certain public offerings, or deal with most shell companies. It also excludes brokers who represent both sides without written disclosure and consent, form a buyer group, sell to passive buyers, or bind a party to the sale. The broker and covered staff must not be barred or suspended from associating with a broker-dealer. This section took effect July 1, 2026.

Applicants for registration as broker-dealer agents or investment adviser representatives must meet specified examination requirements. The rules apply to people applying in Indiana to become broker-dealer agents or investment adviser representatives. The requirements include passing specified securities exams within stated time periods. Certain current professional credentials and participation in FINRA or NASAA programs can qualify an applicant for an exception. The commissioner may waive exam requirements. The examination rules took effect July 1, 2026.

Registered investment adviser representatives must complete continuing education each reporting period. These rules apply to investment adviser representatives registered in Indiana, subject to stated alternatives and waivers. Each reporting period requires six credits on ethics and professional responsibility, including at least three hours on ethics, and six credits on products and practice. Certain FINRA training or required training for a qualifying professional designation can meet some or all of these requirements. The commissioner may waive requirements. The rules took effect July 1, 2026. A representative who misses a reporting period becomes CE Inactive; if still inactive at the end of the next calendar year, the representative cannot register or renew.