Licensed Securities Firms & Professionals Pool Dramatically Increases

Article Presented By Tomlinson Insurance…

(Columbus) – After wrapping up license renewals at the end of December, the Ohio Division of Securities licensed 249,653 individuals and firms to allow them to operate in Ohio, a nearly 10.25% increase from the previous year — the largest increase within the past decade. 

“As we continue to see an increase in the number of licensed securities professionals in Ohio, we want to take this opportunity to highlight resources for Ohio’s consumers and prospective investment advisers to have a successful 2023,” Securities Commissioner Andrea Seidt said.  

Following the Board of Nursing, the Division of Securities has the second-largest licensee population of all other state agencies as of June 30, 2022.  

Consumer Awareness

Before working with a securities firm, platform, or professional, investors can do a quick licensing and background check through the Financial Industry Regulatory Authority’s website at www.brokercheck.finra.org. They can also call the Division of Securities Hotline at 877-683-7841 to ask:

• Is the securities professional, platform, or firm properly licensed in Ohio?
• Is the security being promoted by the firm, platform, or individual registered for sale in Ohio?
• Are there any enforcement actions involving the firm, platform, professional, or security being promoted?

When doing business with Ohio investors, securities professionals and firms are required to be licensed or qualify for an exemption from licensing with the Division. While the Securities Exchange Commission regulates investment advisers managing more than $100 million in assets, Ohio regulates investment advisers managing assets under that threshold. In most cases, an investment adviser’s representatives also require licensure with the Division. 

“The Division protects Ohio investors and their money by routinely performing background checks of license applicants, investigating complaints, and performing regular examinations,” Seidt said.  “Most securities fraud cases occur where unlicensed promoters are selling unregistered securities, so it pays for investors to do their homework before handing over their hard-earned money.”

Licensing Resources 

Nearly all applications for securities licenses with the Division are filed through the Financial Industry Regulatory Authority’s CRD/IARD system. Typically, the Division receives about 1,000 applications per week, mostly salesperson and investment adviser representative licenses, throughout the year. Prospective and current investment advisers and investment adviser representative applicants can check out the Division’s handbook to stay on top of changes in the securities industry.