Investment firms are betting on the future of Idaho’s markets. At least that’s what the numbers suggest. The state Department of Finance says business filings increased sharply last year. Filing allows representatives of companies such as Merrill Lynch, Edward Jones and E*Trade to sell investment opportunities to Idaho residents. Also, companies that want to raise money by selling shares to the public must file to comply with state and federal securities laws.
The department’s Securities Bureau reported a jump in licenses for agents of securities broker-dealers and investment advisory firms living in Idaho and elsewhere. The number increased nearly 10 percent over 2010 to more than 88,000 agents.
Is this an indicator of economic health? That’s one way to look at it. “Presumably, those people think there are drivers in place that make them want to do business here,” says Jim Burns, the department’s chief of investigations.
It’s also good news for the department’s budget. Finance is a dedicated-fund agency, meaning its revenue comes from the fees paid by the industries it regulates, not sales and income taxes. Securities license fees range from $50 to $300. At the end of the fiscal year, funds that exceed 125 percent of the budget go to the state’s general fund.
Commercial bank branches increased by 25 percent last year, Finance reported. “An increase in the number of Idaho financial institutions means greater availability of financial services for all Idahoans, which is critical as the economy turns around,” Burns says.
But Idahoans have stayed away from the mortgage broker/lender business. Filings dropped 21 percent. Finance says quarter-by-quarter data show a stabilizing trend. Meanwhile, the number of solicitors/collectors increased 3 percent.
Lisa Huynh Eller: lisahuyn@gmail.com
