Hawaii Securities License Requirements: Your Guide to Blue Sky Laws

Quick Answer: Hawaii Securities Licensing Overview

Hawaii requires broker-dealers, agents, investment advisers, and investment adviser representatives to register with the state DCCA Securities Enforcement Branch, most through FINRA's CRD or the IARD system, before transacting securities business in the state.

Hawaii adopted the Uniform Securities Act, codified at Hawaii Revised Statutes (HRS) Chapter 485A. That statute is the foundation for every licensing requirement discussed on this page.

Practically speaking, most applicants do not file paper directly with the DCCA. Broker-dealers and agents register through FINRA's Central Registration Depository (CRD). Investment advisers and IARs register through the Investment Adviser Registration Depository (IARD). The DCCA pulls information from those systems.

Exam requirements depend on your role:

Waivers for certain professional designations (CFA, CFP, CPA, others) may substitute for the Series 65. Consult the DCCA Securities Enforcement Branch for current waiver eligibility.

Who Needs a Securities License in Hawaii? Defining Roles and Exemptions

Definitions Under Hawaii Law

HRS Chapter 485A uses definitions consistent with the Uniform Securities Act. The key terms:

Broker-Dealer (HRS §485A-102): A person engaged in the business of effecting transactions in securities for the account of others or for the person's own account. This covers firms, not just individuals.

Agent (HRS §485A-102): An individual, other than a broker-dealer, who represents a broker-dealer or issuer in effecting or attempting to effect purchases or sales of securities. If you are a registered representative working for a broker-dealer and doing business with Hawaii clients, you need an agent license in Hawaii.

Investment Adviser (HRS §485A-102): A person who, for compensation, engages in the business of advising others about securities. This includes portfolio managers, financial planners who charge for securities advice, and similar professionals.

Investment Adviser Representative (HRS §485A-102): An individual employed by or associated with an investment adviser who makes securities recommendations, manages client accounts, determines advice to give, or supervises those who do.

What Triggers Licensure

A license is required the moment you begin soliciting, offering, or transacting securities business with Hawaii residents, or when you establish a place of business in Hawaii. The state's jurisdiction extends to offers made from Hawaii and offers directed into Hawaii (HRS §485A-610).

Exemptions from Registration

Broker-Dealers may be exempt under HRS §485A-401 if they have no place of business in Hawaii and their transactions are limited to specific categories, including:

• Transactions with existing customers who are not Hawaii residents
• Transactions with institutional investors (banks, insurance companies, registered investment companies, and similar entities)
• Isolated, non-recurring transactions

Investment Advisers have two major exemption categories under HRS §485A-403:

• Federal covered advisers: If your firm is registered with the SEC (generally because you manage a certain threshold of assets under management), you are a "federal covered adviser" and register with the SEC, not the state. You still must file a notice with the DCCA and pay a notice filing fee. The AUM threshold for federal versus state registration is set by the Investment Advisers Act of 1940 and SEC rules. Consult the SEC's Form ADV instructions and the DCCA for your specific situation to determine if you are a federal covered adviser.
• De minimis exemption: An IA with no place of business in Hawaii and no more than five clients who are Hawaii residents during any 12-month period may be exempt from state registration (HRS §485A-403).
• Certain professionals: Lawyers, accountants, engineers, and teachers whose investment advice is incidental to their professional practice may qualify for exemption.

Hawaii's Blue Sky Laws: Key Statutes and Regulatory Framework

The Hawaii Uniform Securities Act

Hawaii enacted the Uniform Securities Act in its modern form as HRS Chapter 485A. The statute covers three broad areas: registration of securities professionals, registration of securities offerings, and anti-fraud provisions.

For licensing purposes, the most relevant sections are:

• HRS §485A-401: Registration requirement for broker-dealers
• HRS §485A-402: Registration requirement for agents
• HRS §485A-403: Registration requirement for investment advisers
• HRS §485A-404: Registration requirement for investment adviser representatives
• HRS §485A-102: Definitions
• HRS §485A-412: Post-registration requirements (books, records, supervision)
• HRS §485A-501 through §485A-508: Anti-fraud provisions and enforcement authority

The DCCA Securities Enforcement Branch

The DCCA Securities Enforcement Branch operates under the authority granted by HRS Chapter 485A. The Commissioner of Securities (a function within the DCCA) has authority to:

• Grant, deny, suspend, or revoke registrations
• Conduct examinations of registrants
• Issue cease-and-desist orders
• Refer matters for criminal prosecution
• Impose civil penalties

Hawaii Administrative Rules

Hawaii Administrative Rules (HAR) Title 16, Chapter 38 supplements the statute with procedural and technical requirements, including record-keeping standards, fee schedules, and continuing education specifics. When the statute sets a framework, HAR Title 16, Chapter 38 fills in operational details. Always check both the statute and the administrative rules.

Securities Registration vs. Professional Licensing

This page focuses on licensing the people and firms doing securities business. Separately, HRS Chapter 485A also requires registration of securities offerings (the actual stocks, bonds, and investment contracts being sold). These are two distinct processes. A broker-dealer can be properly licensed but still violate the law by selling unregistered securities.

The Hawaii Securities Licensing Application Process: Steps, Exams, and Fees

Broker-Dealers and Agents: CRD Process

1. Create or access a CRD account through FINRA's web-based system (brokercheck.finra.org leads to the public side; firms access the filing side through FINRA's firm gateway).
2. File Form BD (for the broker-dealer entity) through CRD. The form covers business structure, ownership, disciplinary history, and the states where you seek registration.
3. Select Hawaii as a state of registration within the Form BD filing. This triggers the DCCA review.
4. Agents file Form U4 through CRD, identifying their employing broker-dealer and the states where they seek registration.
5. Pass required exams before or concurrent with filing. The Series 63 (Uniform Securities Agent State Law Examination) is the standard state-law exam for agents. The Series 7 (General Securities Representative) covers product knowledge. The Series 66 combines the Series 63 content with the Series 65 content and can substitute for both if the agent also holds a Series 7.
6. Submit fingerprints for a background check. FINRA coordinates fingerprinting for CRD filers.
7. Pay state fees through the CRD system. The DCCA collects fees via CRD.

Investment Advisers and IARs: IARD Process

1. Access the IARD system through NASAA's designated portal.
2. File Form ADV (Parts 1 and 2) for the investment adviser firm. Part 1 is the regulatory filing. Part 2 is the client-facing brochure.
3. Select Hawaii as a state of registration within Form ADV. Federal covered advisers file a notice through IARD rather than a full registration.
4. IARs file Form U4 through IARD, linking to their employing IA firm.
5. Pass required exams. The Series 65 (Uniform Investment Adviser Law Examination) is the standard for IARs. The Series 66 plus Series 7 combination also qualifies. NASAA maintains a list of professional designations that may waive the Series 65 requirement. Consult the DCCA to confirm current waiver eligibility.
6. Pay state fees through IARD.

Fees

The DCCA publishes its fee schedule, and fees are collected through CRD and IARD. Because fee amounts are subject to change and the source material for this page does not include the current DCCA fee schedule, specific dollar amounts are not listed here. Consult the DCCA Securities Enforcement Branch fee schedule directly (see the contact section below) or check the current HAR Title 16, Chapter 38 for the official figures. Fees vary by license type (broker-dealer, agent, IA, IAR) and by initial versus renewal filing.

Surety Bonds

Consult the DCCA Securities Enforcement Branch for current surety bond requirements. Bond amounts, if required, vary by firm type and are specified in HAR Title 16, Chapter 38.

Maintaining Your Hawaii Securities License: Renewals, Continuing Education, and Compliance

Annual Renewal

Securities licenses in Hawaii renew annually. The CRD and IARD systems handle renewal filings and fee collection. The standard renewal period runs through December 31, with renewal windows opening in the fourth quarter. Missing the renewal deadline can result in license expiration, requiring a new application rather than a simple renewal. Confirm exact deadlines with the DCCA Securities Enforcement Branch, as administrative rules under HAR Title 16, Chapter 38 govern the specifics.

Continuing Education

FINRA-registered individuals (agents at broker-dealers) are subject to FINRA's Continuing Education Program, which includes:

• Regulatory Element: Computer-based training required within 120 days of the second anniversary of initial registration and every three years after that (FINRA Rule 1240).
• Firm Element: Annual training designed by the broker-dealer firm, covering products, services, and regulatory topics relevant to the firm's business.

Investment Adviser Representatives are subject to NASAA's IAR CE Program, which became effective in many states and requires IARs to complete annual continuing education. Hawaii's adoption of and specific requirements under the IAR CE Program should be confirmed directly with the DCCA, as implementation timelines vary by state.

Record-Keeping

HRS §485A-412 and HAR Title 16, Chapter 38 set record-keeping obligations. Broker-dealers and investment advisers must maintain books and records sufficient to demonstrate compliance with the Act. The DCCA has examination authority to review those records. Federal rules (SEC Rules 17a-3 and 17a-4 for broker-dealers; Rule 204-2 for investment advisers) also apply to federally registered firms and their state-registered affiliates.

Supervision

Broker-dealers must maintain a supervisory system reasonably designed to achieve compliance with applicable securities laws (HRS §485A-412). Investment advisers have parallel obligations. Written supervisory procedures are expected. The DCCA can examine for adequacy of supervision.

Reporting Changes

Material changes must be reported promptly through CRD or IARD, including:

• Changes of address (business or residential for individuals)
• Disciplinary actions, criminal charges, or regulatory proceedings
• Termination of employment or association
• Changes in ownership or control of a firm

HRS Chapter 485A requires prompt amendment of registration filings when information becomes inaccurate. Failure to report can itself be a violation.

Recent Legislative Activity Affecting Financial Licensure in Hawaii

The most relevant recent bill for financial licensure in Hawaii is SB 945 (2023 Regular Session), titled "Relating to Special Purpose Digital Currency Licensure." The bill would have created a licensing framework for special purpose digital currency companies operating in Hawaii, administered through the DCCA's Division of Financial Institutions. It was vetoed by the Governor (Gov. Msg. No. 1363).

The veto means SB 945 did not become law. Hawaii does not currently have a specific licensing regime for digital currency businesses separate from existing financial services regulations.