Investment adviser bond cost
The New Jersey Division of Consumer Affairs Bureau of Securities requires investment advisers to post surety bonds to legally work within the state. The required bond amount varies and is based on the volume of funds the adviser has authority over. Applicants must verify their required bond amount with the state prior to bonding.Depending on the bond amount, an applicant with exceptional credit may qualify to pay a premium as little as 1% of the total bond amount.
Why this bond
New Jersey investment adviser bonds ensure that principals (investment advisers) perform all obligations as an investment adviser licensed under the New Jersey Uniform Securities Law. Specifically, the bond guarantees that the principal accounts for all money and securities entrusted to him or her for the use and benefit of consumers.
If the principal fails to conduct business lawfully, a claim can be filed against the bond. The bond protects consumers from financial loss up to the full bond amount if the claim is validated.
Investment adviser bond details
The surety bond is in effect for one year and must be renewed annually unless claimed against or cancelled. A surety can cancel the bond if they give the principal and obligee 90-days’ written notice.
Become an investment adviser
Along with posting a surety bond in the appropriate amount the applicant must also submit the following:
- Proper forms and registration
- An annual investment adviser exam
- A $200 annual fee
For complete licensing and bond information, refer to the Additional Information section below.
Apply for your surety bond
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