Massachusetts Securities License Requirements: A Guide
Navigate Massachusetts securities license requirements for broker-dealers, agents, investment advisers, and IARs. Understand state-specific exams, fees, and compliance.
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Massachusetts requires state registration for broker-dealers, agents, investment advisers, and investment adviser representatives, in addition to federal requirements. The Massachusetts Securities Division, under the Massachusetts Uniform Securities Act (M.G.L. c. 110A), oversees this process. Registration typically involves filing through FINRA's CRD or NASAA's IARD systems, background checks, and qualifying examinations. State "blue sky" laws often impose stricter standards than federal regulations.
Quick Answer: Massachusetts Securities Licensing Overview
Massachusetts regulates securities professionals through the Securities Division of the Office of the Secretary of the Commonwealth. The Division operates under the Massachusetts Uniform Securities Act (M.G.L. c. 110A), the state's "blue sky" law. This law runs parallel to federal securities regulation and, in several respects, imposes stricter standards.
Four categories of professionals typically need state-level registration:
- Broker-Dealers (BD): Firms that buy and sell securities for customers or for their own accounts.
- Agents: Individual representatives who transact securities business on behalf of a broker-dealer or issuer.
- Investment Advisers (IA): Firms or individuals compensated for advising others on securities investments.
- Investment Adviser Representatives (IAR): Individuals who provide investment advice on behalf of a registered IA firm.
The general path to licensure runs through FINRA's Central Registration Depository (CRD) for broker-dealer registrants or NASAA's Investment Adviser Registration Depository (IARD) for investment adviser registrants. Both systems feed into the Massachusetts Securities Division's review process. Expect background checks, fingerprinting, qualifying examinations, and state-specific filings.
Federal registration with the SEC does not eliminate Massachusetts registration obligations for most registrants. State blue sky requirements layer on top of federal rules.
Who Needs a Securities License in Massachusetts?
Massachusetts law defines registration triggers broadly. Consult the Massachusetts Securities Division if you are unsure whether your activity requires a license.
Broker-Dealers
Under M.G.L. c. 110A §201, any person in the business of effecting securities transactions for others or for their own account must register as a broker-dealer with the Massachusetts Securities Division, unless an exemption applies. "Person" includes firms and individuals acting in that capacity.
Key exemptions include broker-dealers registered with the SEC whose only Massachusetts clients are other broker-dealers, banks, or institutional buyers. Exemptions also apply to those with no place of business in the state who deal exclusively with certain institutional clients (950 CMR 12.200).
Agents of Broker-Dealers
An agent is any individual who represents a broker-dealer or issuer in effecting or attempting to effect securities transactions (M.G.L. c. 110A §201). Partners, officers, and directors of a broker-dealer who perform agent functions must register individually. Clerical and administrative staff who do not effect transactions are generally excluded.
The de minimis exemption under M.G.L. c. 110A §201 allows agents of issuers to avoid registration if they meet specific criteria related to the number of transactions and compensation. This exemption is narrow. Confirm its applicability with the Massachusetts Securities Division before relying on it.
Investment Advisers
M.G.L. c. 110A §202 requires registration for any person who, for compensation, engages in the business of advising others on securities. Massachusetts-registered IAs are firms managing less than specific asset under management (AUM) thresholds that are not required to register with the SEC.
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Last verified: May 14, 2026
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- Series 65 Exam Prep — Investment Adviser LawThe most common path to becoming a Registered Investment Adviser Rep in any state. Covers Uniform Securities Act, fiduciary duty, and fraud prevention.
- Series 66 Exam Prep — Combined State LawCombines Series 63 + 65 into a single test for candidates already holding Series 7. Required in most states for IAR registration.
- Series 7 Exam Prep — General Securities RepFINRA's broker-dealer rep license. Required by every state before selling general securities. Recently revised for the post-2018 split format.
- Investment Adviser Compliance Manual — Form ADV & CustodyHow to navigate the SEC/state Form ADV split, custody rule, and code of ethics. The reference RIA firms hand new compliance hires.