Securities License Requirements

How does Florida regulate and authorize licenses?   

A “license” to regulate professions and occupations means any permit, registration, certificate, or license issued in Florida. An occupational license is a privilege accorded by the state or its subdivisions to conduct a business at a particular location and is not a property right protected by substantive due process; the denial of such license does not prevent the business owner from pursuing a lawful occupation but merely stops the business from operating at a particular location. Ammons v. Okeechobee County, 710 So. 2d 641 (Fla. 4th DCA 1998).  

On July 1, 2021, the Florida Legislature passed Section 163.211 into law, which prevents any county, municipality, or other political subdivision of Florida from implementing additional licensing requirements for most occupations. Therefore, a prospective applicant only needs to satisfy state statutory requirements. 

Need help receiving, renewing, or defending your license? Schedule your consultation today with a top administrative law and licensing attorney.  

Which laws and regulations apply to Florida securities licenses?  

The Office of Financial Regulation (OFR) regulates securities licenses in Florida through the Florida Securities and Investor Protection Act (FSIPA) found in Chapter 517 of the Florida Statutes. The FSIPA sets forth the rules for the registration of securities, the licensing of securities professionals, and the enforcement of securities regulations in Florida. 

One significant regulation in Florida concerning securities licenses is the Florida Administrative Code Rule 69W-600. This rule stipulates the licensing and qualification requirements for broker-dealers, investment advisers, and associated persons. Furthermore, the Financial Industry Regulatory Authority (FINRA), a federal institution, oversees the licensing and compliance of securities professionals under its rules and regulations, according to the Securities Act of 1933, the Securities Exchange Act of 1934 

What are the application and retention requirements for securities licenses in Florida? 

Application Requirements:

Applicants for securities licenses must meet specific criteria outlined in federal and state laws. For instance, applicants for broker-dealer, investment adviser, or associated person licenses must pass the appropriate examinations administered by FINRA. These examinations may include the Series 7, Series 63, and Series 65 exams, depending on the license being sought. 

Moreover, applicants must complete Form BD (Uniform Application for Broker-Dealer Registration) or Form ADV (Uniform Application for Investment Adviser Registration) and submit them to the Florida OFR through the Central Registration Depository (CRD) or the Investment Adviser Registration Depository (IARD) systems, respectively. Applicants must also submit fingerprints and pay the necessary fees. 

Retention Requirements:

To maintain their securities license over time, licensees must comply with ongoing requirements, such as completing continuing education courses, adhering to recordkeeping and reporting obligations, and maintaining net capital standards.  

In addition, licensees must abide by the rules and regulations set forth by FINRA, the SEC, and the Florida OFR. Failure to comply with these requirements can result in disciplinary actions, including fines, suspension, or revocation of the securities license.  

To determine whether you meet the requirements for a securities license, please contact our office to set up your initial consultation. 

Can the OFR’s license decision be appealed?  

Yes, an adverse license decision made by the OFR is appealable. The authority for appealing such decisions comes from the Florida Administrative Procedure Act (APA), Chapter 120 of the Florida Statutes. Specifically, the right to appeal derives from Florida Statutes §120.569 and §120.57. The APA establishes the framework for challenging agency actions, such as licensing decisions, through administrative hearings and judicial review.  

If an applicant or licensee receives an adverse decision from the OFR, they may request an administrative hearing to challenge it. The request for a hearing must be submitted within the timeframe specified in the agency’s notice, which is generally 15 days from the date of the notice, as provided in Section 120.569(2)(a), Florida Statutes. 

The administrative hearing process commences with submitting a petition for a hearing to the agency. The petition must comply with the requirements outlined in Rule 28-106.201, Florida Administrative Code. If the petitioner qualifies for an administrative hearing, the case is referred to the Division of Administrative Hearings (DOAH) and assigned to an administrative law judge (ALJ). 

The ALJ conducts the hearing, like a trial, with both parties presenting evidence and testimony. After the hearing, the ALJ issues a recommended order, which includes findings of fact, conclusions of law, and a recommendation for a final decision. The OFR then reviews the recommended order and issues a final order, either adopting, modifying, or rejecting the ALJ’s recommendations. 

Suppose the petitioner is unsatisfied with the OFR’s final order. In that case, they can seek judicial review by filing a notice of appeal with the appropriate District Court of Appeal, as provided in Section 120.68, Florida Statutes. The court reviews the case to determine if the agency’s decision follows from competent, substantial evidence and complies with the law. 

Have more questions about a professional licensing-related situation?  

Crucially, this overview of securities licenses does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances. 

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively. 

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain a tireless advocate every step of the way. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant. 

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to set up a consultation.