The Ins and Outs of Investor Licensing: Ohio Division of Securities Offers Guidance During National Investors Month

COLUMBUS, Ohio - In recognition of National Investors Month in August, the Ohio Department of Commerce Division of Securities is highlighting the importance of financial safety and informed decision-making. With more than 250,000 salespersons and more than 5,000 firms licensed to operate in Ohio's regulated investment market, it is essential that investors understand how to protect themselves and their money.

"Our mission is to help Ohioans invest wisely and confidently," said Ohio Securities Commissioner Andrea Seidt. "Licensing is one safeguard, but true financial safety comes from awareness, including knowing who you're working with, understanding the product, and recognizing the signs of fraud before it happens."

Financial safety begins before any money is exchanged. Whether you're exploring retirement planning, considering new investment platforms, or evaluating advice from a financial professional, there are a number of steps that Ohio investors can take to reduce risk and increase confidence.

• Verify before you invest. Ensuring that a professional is properly licensed is a fundamental safeguard. Broker-dealers, securities salespersons, investment advisers, investment-adviser representatives, and investment officers must be licensed or exempt to operate legally in Ohio. Working with individuals who are not licensed puts you at risk because unlicensed promoters may sell unregistered or fraudulent products, operate without regulatory oversight, and leave you with little recourse if something goes wrong. Licensed professionals must meet state standards, follow compliance rules, and are subject to examinations and enforcement actions, which means there is a system in place to help protect you.
• Check backgrounds thoroughly. Using tools like FINRA's BrokerCheck gives investors access to licensing records, disciplinary actions, exam results, and any pending complaints, which is a crucial step toward making informed, safe decisions. In other words, checking a professional via the BrokerCheck tool can help investors spot any potential red flags. Ohio investors may also call the Division at 614-644-7381 to verify an individual is licensed.
• Go slow with unsolicited offers. Many fraud cases arise from unlicensed promoters selling unregistered securities. The Ohio Division of Securities routinely conducts investigations and background checks to protect investors from these schemes. If you are presented with an investment opportunity out of the blue, approach it carefully since unsolicited pitches are often used by unlicensed promoters to sell unregistered or fraudulent products. Without proper licensing and regulatory oversight, there's no safeguard ensuring the promoter is operating legally or ethically.
• Ask questions. A credible professional will welcome inquiries about fees, risks, investment strategy, licensing, and your overall financial goals.

Licensing is an important layer of protection that helps Ohioans make safer financial choices. It ensures oversight, reduces risk and promotes transparency. The Division performs background checks, conducts examinations, and can revoke licenses for violations of the Ohio Securities Act. While licensing cannot guarantee future behavior, it helps to ensure professionals have met minimum standards and are subject to regulatory review.

To learn more about consumer and investor resources from the Division, visit com.ohio.gov/securities.

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About the Divisions of Securities
The Division of Securities is part of the Ohio Department of Commerce. The department is Ohio's chief regulatory agency, focused on promoting prosperity and protecting what matters most to Ohioans. We ensure businesses follow the laws that help them create jobs and keep Ohioans safe. To learn more about what we do, visit our website at com.ohio.gov.