in-20260211-IR-710250231FRA: ASSESSMENT OF FINES AND CIVIL PENALTIES

TITLE 710 SECURITIES DIVISION FINAL RULE LSA Document #25-231 DIGEST ASSESSMENT OF FINES AND CIVIL PENALTIES Adds 710 IAC 5 concerning fines and civil penalties required by House Enrolled Act 1623-2023. While the fees are statutorily set, the fines and civil penalties amount is discretionary up to $10,000 per violation. Effective February 12, 2026. HISTORY Notice of First Public Comment Period: 20250514-IR-710250231FNA Regulatory Analysis submitted with Notice of First Public Comment Period: 20250514-IR-710250231RAA Date of First Hearing: June 17, 2025 60 Day Notice: 20250709-IR-710250231ARA Notice of Recall: 20250820-IR-710250231RCA Notice of Second Public Comment Period: 20251029-IR-710250231SNA Date of Second Hearing: December 1, 2025 CITATIONS AFFECTED: 710 IAC 5 SUMMARY/RESPONSE TO COMMENTS The Securities Division (division) requested public comment from May 14, 2025, through June 13, 2025, and from October 29, 2025, through November 28, 2025; and during the public hearings on June 17, 2025 and December 1, 2025. The division received no comments in response to the public comment periods or public hearings. FINAL RULE Sec. 1. (a) Except as provided in subsection (b), the definitions contained in this article apply throughout this title. (b) If a definition in this article conflicts with a definition of specific applicability in another part of this title, or in a statute that controls another part of this title, the definition of specific applicability controls. Sec. 2. "Commissioner" means the securities commissioner appointed under IC 23-19-6-1(a). Sec. 3. (a) Except as provided in subsection (b), "fraud", "fraudulent", "deceit", and "defraud" have the meaning set forth in IC 23-19-1-2(9). (b) Fraud and deceit related to franchises includes: Sec. 4. "Harmed person" means the person harmed, defrauded, misled, or deceived by the violation. Sec. 5. (a) Except as provided in subsection (b), "person" has the meaning set forth in IC 23-19-1-2(20). (b) "Person", as it relates to commodities under IC 23-2-6, has the meaning set forth in IC 23-2-6-14. Sec. 6. "Respondent" means the responding party in legal proceedings that a fine or civil penalty has been imposed against. Sec. 1. (a) The commissioner may impose a civil penalty in an amount not to exceed ten thousand dollars ($10,000) on a respondent for each violation under IC 23-19. Mitigating and aggravating factors can affect the amount of civil penalty imposed. (b) Nothing in this rule requires the commissioner to impose a civil penalty for a violation. Sec. 2. Mitigating factors are extenuating circumstances that may lead to a reduced civil penalty. The mitigating circumstances that may be considered include the following: Sec. 3. Aggravating factors are circumstances that may increase an imposed civil penalty. The aggravating circumstances that may be considered include the following: Sec. 4. In certain situations, several violations may have been committed. Separate violations may be grouped for the purpose of applying this policy. The total fine or civil penalty assessed in an enforcement case may include penalties for several violations or groups of violations, each calculated under this policy. Sec. 1. (a) The commissioner may impose a civil penalty in an amount not to exceed ten thousand dollars ($10,000) on a respondent for each violation under IC 23-2-2.5. Mitigating and aggravating factors can affect the amount of civil penalty imposed. (b) Nothing in this rule requires the commissioner to impose a civil penalty for a violation. Sec. 2. Mitigating factors are extenuating circumstances that may lead to a reduced civil penalty. The mitigating circumstances that may be considered include the following: Sec. 3. Aggravating factors are circumstances that may increase an imposed civil penalty. The aggravating circumstances that may be considered include the following: Sec. 4. In certain situations, several violations may have been committed. Separate violations may be grouped for the purpose of imposing a civil penalty. The total fine or civil penalty assessed in an enforcement case may include penalties for several violations or groups of violations, each calculated under this policy. Sec. 1. (a) The commissioner may impose a civil penalty in an amount not to exceed a maximum of ten thousand dollars ($10,000) on a respondent for each violation under IC 23-2.5. Mitigating and aggravating factors can affect the amount of civil penalty imposed. (b) Nothing in this rule requires the commissioner to impose a civil penalty for a violation. Sec. 2. Mitigating factors are extenuating circumstances that may lead to a reduced civil penalty. The mitigating circumstances that may be considered include the following: Sec. 3. Aggravating factors are circumstances that may increase an imposed civil penalty. The aggravating circumstances that may be considered include the following: Sec. 4. In certain situations, several violations may have been committed. Separate violations may be grouped for the purpose of imposing a civil penalty. The total fine or civil penalty assessed in an enforcement case may include penalties for several violations or groups of violations, each calculated under this policy. Sec. 1. (a) The commissioner may impose a civil penalty of not more than ten thousand dollars ($10,000) on a respondent for any single violation under IC 23-2-6. Mitigating and aggravating factors can affect the amount of civil penalty imposed. (b) Nothing in this rule requires the commissioner to impose a civil penalty for a violation. Sec. 2. Mitigating factors are extenuating circumstances that may lead to a reduced civil penalty. The mitigating circumstances that may be considered include the following: Sec. 3. Aggravating factors are circumstances that may increase an imposed civil penalty. The aggravating circumstances that may be considered include the following: Sec. 4. In certain situations, several violations may have been committed. Separate violations may be grouped for the purpose of applying this policy. The total fine or civil penalty assessed in an enforcement case may include penalties for several violations or groups of violations, each calculated under this policy. Sec. 1. (a) The commissioner may impose a civil penalty in an amount not to exceed ten thousand dollars ($10,000) on a respondent for each violation under IC 25-11. Mitigating and aggravating factors can affect the amount of civil penalty imposed. (b) Nothing in this rule requires the commissioner to impose a civil penalty for a violation. Sec. 2. Mitigating factors are extenuating circumstances that may lead to a reduced civil penalty. The mitigating circumstances that may be considered include the following: Sec. 3. Aggravating factors are circumstances that may increase an imposed civil penalty. The aggravating circumstances that may be considered include the following: Sec. 4. In certain situations, several violations may have been committed. Separate violations may be grouped for the purpose of applying this policy. The total fine or civil penalty assessed in an enforcement case may include penalties for several violations or groups of violations, each calculated under this policy. ["Article 5. Assessment of Fines and Civil Penalties (Expired)" will be redesignated to "Article 6. Assessment of Fines and Civil Penalties" by the publisher before the article is added to the Administrative Code per the Agency Correction posted at 20260211-IR-710250231ACA.] LSA Document #25-231 Notice of First Public Comment Period: May 14, 2025 Last Hearing Held: December 1, 2025 Approved by Attorney General: January 7, 2026 Approved by Governor: January 9, 2026 Filed with Publisher: January 12, 2026, 4:22 p.m. Documents Incorporated by Reference: None Received by Publisher Small Business Regulatory Coordinator: Jerry Bonnet, General Counsel, Indiana Secretary of State, 200 West Washington Street, Room 201, Indianapolis, IN 46204, (317) 232-6534, jbonnet@sos.in.gov