Ohio’s economic prosperity is leading a record number of securities dealers and salespersons to become licensed to sell securities in Ohio, Securities Commissioner Thomas E. Geyer announced today. As of February 18, there were a record 2,388 securities dealers and a record 101,078 securities salespersons, often known as stockbrokers, licensed in Ohio.

"The strength of Ohio’s economy is a major factor in the increase in the number of securities dealers and their salespersons who are serving the investment needs of Ohio’s citizens," Commissioner Geyer said.

In addition to the licensure of securities dealers and salespersons, the Ohio Department of Commerce’s Division of Securities has begun licensing persons who are engaged in the business of giving advice regarding securities. These "investment advisers" are subject to certain licensing, competency, conduct and anti-fraud standards administered by the Ohio Department of Commerce’s Division of Securities.

Amended Substitute House Bill 695, which took full effect on January 1, 2000, shifted the oversight of certain investment advisers operating in Ohio from federal to state authorities. Under the new law, investment advisers with less than $25 million in assets under management are licensed and overseen solely by the Division of Securities. The remaining advisers are registered with the federal Securities and Exchange Commission, and only make a "notice filing" with the Division of Securities.

As of February 18, a total of 980 investment advisers have filed with the Division. Of these, 403 are licensed by the Division, and 577 are "notice filers" who are registered with the federal SEC.

In addition, the Division has licensed 5,186 investment adviser representatives. These are individuals who are employed or supervised by an investment adviser firm and meet with clients on a regular basis to render advice about securities.

"As more and more Ohioans seek advice for their financial futures, the investment adviser oversight program will help protect the consumer and help protect the integrity of the Ohio securities marketplace," said Commissioner Geyer.

Commissioner Geyer also encouraged Ohioans who are thinking about starting a relationship with a securities professional to do their homework. "We encourage investors to investigate before they invest. At a minimum, this should include obtaining background information about the broker or adviser, and fully understanding the terms and costs of the proposed relationship," Commissioner Geyer said. He noted that the Division’s Investor Protection Hotline, 1-800-788-1194, provides licensing and other background information about stockbrokers and investment advisers.

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