Arizona Securities License Requirements: Broker-Dealers & IAs

Arizona securities licensing is managed by the Arizona Corporation Commission (ACC) Securities Division. The state uses FINRA's CRD system for broker-dealers and their agents, and the IARD system for investment advisers. You must obtain a license before conducting any business in the state.

Quick Answer: Arizona Securities Licensing Overview

Arizona regulates its securities industry under the Securities Act of Arizona (A.R.S. Title 44, Chapter 12). Generally, three types of professionals need to register before doing business in the state: broker-dealers, investment advisers, and agents (also called registered representatives or salesmen in the statute).

The ACC Securities Division is the state regulator. It does not have its own registration portal. Instead:

• Broker-dealers and their agents apply through FINRA's Central Registration Depository (CRD).
• Investment advisers and their investment adviser representatives (IARs) apply through the Investment Adviser Registration Depository (IARD).

FINRA administers both systems on behalf of state regulators. The ACC receives filings, fees, and background check results through these platforms.

Key requirements for all categories include passing qualifying exams, submitting uniform application forms, paying state and system fees, clearing fingerprint-based background checks, and maintaining ongoing compliance, including annual renewals and continuing education.

The relevant statutes are A.R.S. Title 44, Chapter 12 (the Securities Act of Arizona) and the Arizona Administrative Code (A.A.C.) Title 14, Chapter 4. For current fees and procedural details, consult the ACC Securities Division directly, as these are updated periodically.

Who Needs a Securities License in Arizona? Defining Key Roles

Broker-Dealers

A "dealer" (Arizona's statutory term for broker-dealer) is any person in the business of buying or selling securities for their own account or for others as part of a regular business, according to A.R.S. § 44-1801. This includes firms that execute trades, underwrite securities, and act as market makers.

A firm located outside Arizona with no office in the state may qualify for an exemption if its Arizona business is limited to transactions with existing customers temporarily in Arizona or with institutional investors. Review A.A.C. R14-4-101 et seq. and consult the ACC Securities Division for specific exemption details before relying on them.

Investment Advisers

An "investment adviser" is any person who, for compensation, advises others on the value of securities or the advisability of investing in, purchasing, or selling securities, per A.R.S. § 44-1801.

The threshold for state versus SEC registration depends on assets under management (AUM):

• Advisers with less than $100 million AUM generally must register with the ACC (state-registered).
• Advisers with $100 million or more AUM generally register with the SEC (federally covered) and file a notice with the ACC instead of seeking full state registration.
• Advisers with $25 million to $100 million AUM may have a choice based on whether they are required to register in 15 or more states. Consult the ACC Securities Division and the Investment Advisers Act of 1940 for exact thresholds.

Exemptions are available for advisers whose only clients are insurance companies, advisers with no place of business in Arizona and five or fewer Arizona clients in a 12-month period (the de minimis exemption), and certain other categories under A.R.S. § 44-3151 and A.A.C. R14-4-104.

Agents (Registered Representatives)

An "agent" or "salesman" is an individual who represents a dealer or issuer in effecting or attempting to effect purchases or sales of securities, according to A.R.S. § 44-1801. Agents must be associated with and sponsored by a registered broker-dealer; they cannot operate independently.

Clerical and administrative employees who do not effect transactions, and officers or partners of a broker-dealer who do not effect transactions, may be excluded from the definition. Refer to A.R.S. § 44-1801 for the complete exclusion language.

Broker-Dealer Licensing Requirements in Arizona

Application Process

To register as a broker-dealer in Arizona, start through FINRA's CRD system. The firm needs a CRD account and must submit Form BD (Uniform Application for Broker-Dealer Registration) via the system. The ACC receives the filing electronically; no separate paper application is needed for initial registration.

Required Forms

• Form BD: This is the main application. It details the firm's ownership structure, business activities, disciplinary history, and financial condition. Accuracy is crucial. Material misstatements or omissions can lead to denial or revocation under A.R.S. § 44-1941.

Financial Requirements

Arizona requires registered broker-dealers to meet net capital and surety bond requirements. The net capital figures generally follow SEC Rule 15c3-1 (the SEC's net capital rule) and depend on the type of business conducted. For precise Arizona-specific figures and any state supplements, consult A.A.C. R14-4-103 and the ACC Securities Division, as these numbers are subject to regulatory changes and vary by business model.

Surety bond requirements also apply. The bond amount varies by jurisdiction and business type. Contact the ACC Securities Division for the current required bond amount before applying.

Principal Examinations

At least one principal of the broker-dealer must pass appropriate qualifying examinations. Common required exams include:

• Series 24: General Securities Principal
• Series 27: Financial and Operations Principal (for firms holding customer accounts)
• Series 28: Introducing Broker-Dealer Financial and Operations Principal
• Series 99: Operations Professional

The specific exam depends on the firm's business activities. Consult the FINRA Rulebook and the ACC Securities Division to determine the correct combination for your firm's scope.

Fees

The ACC sets state filing fees for broker-dealer registration, which are subject to change. Check the ACC Securities Division fee schedule for current amounts. FINRA also charges separate CRD system fees. Both must be paid for the application to be processed.

Fingerprints and Background Checks

All principals and associated persons must submit fingerprints through the CRD system. The ACC reviews criminal history during the application process. Undisclosed disciplinary history frequently causes application delays and denials.

Designated Supervisor

Arizona requires broker-dealers to have adequate supervisory systems. At least one qualified principal must be designated to oversee the firm's activities in compliance with A.R.S. § 44-1941 and applicable FINRA rules.

Investment Adviser (IA) Licensing Requirements in Arizona

Application Process

State-registered investment advisers apply through the IARD system using Form ADV. The ACC receives the filing electronically. SEC-registered advisers file a notice through IARD, not a full state registration, but they still pay a state notice filing fee.

Required Forms

• Form ADV Part 1: Details the firm's business, ownership, clients, employees, business practices, affiliations, and disciplinary history.
• Form ADV Part 2A: This is the client "brochure." It must be written in plain English and describe services, fees, conflicts of interest, and disciplinary history.
• Form ADV Part 2B: The "brochure supplement" for individual investment adviser representatives (IARs) who provide advisory services. Clients supervised by that IAR must receive this.

Financial Requirements

Arizona requires state-registered investment advisers to meet net worth requirements, especially if they have custody of client assets or accept prepaid fees above a certain threshold. Specific dollar amounts vary by circumstance. Consult A.A.C. R14-4-104 and the ACC Securities Division for current figures, as these are subject to regulatory updates.

Surety bond requirements may apply if the adviser does not meet the minimum net worth threshold. Contact the ACC Securities Division for the applicable bond amount.

Principal Examinations

Individuals providing investment advice for a state-registered IA must pass one of the following:

• Series 65: Uniform Investment Adviser Law Examination (standalone qualification)
• Series 7 + Series 66: The Series 66 (Uniform Combined State Law Examination) combined with an active Series 7 is an accepted alternative.

Arizona recognizes these NASAA-developed examinations. Certain professional designations (like CFA, CFP, CPA, ChFC, and others) may waive the Series 65 exam requirement. Check with the ACC Securities Division for the current list of accepted designations and the waiver process.

Fees

The ACC sets state filing fees for IA registration. IARD also charges system fees. Consult the ACC Securities Division fee schedule and the NASAA/IARD fee schedule for current amounts, as these vary and are updated periodically.

Supervisory and Compliance Obligations

State-registered IAs in Arizona must maintain written supervisory procedures, keep required books and records, and comply with the ACC's examination and inspection authority under A.R.S. § 44-3151. Annual updating amendments to Form ADV are due within 90 days of the adviser's fiscal year-end.

Securities Agent Licensing Requirements in Arizona

Application Process

Agents do not