Investment adviser surety bond cost
Investment adviser bonds are required by the State of North Carolina Securities Division and must be in the amount of $35,000. Surety Bonds offers these bonds for different prices depending on a review of each applicant’s personal credit report.
The cost is subject to underwriting, but our experts work hard to get each and every applicant bonded for the lowest rates possible. Give us a call at 888.610.4474 or submit a bond request to begin our fast and easy bonding process.
Why this bond?
North Carolina investment adviser bonds ensure that investment advisers comply with all rules and regulations stated in Chapter 78C of the North Carolina General Statutes. This bond protects the state and consumers from financial loss if the adviser fails to adhere to all terms of the surety contract. Under this bond, the adviser cannot:
- Employ any device or scheme to defraud another person
- Act as principal for his or her own account, intentionally selling or purchasing any security from a client
- Act as a broker for another client to effect a sale or purchase without first disclosing to such client in writing before the completion of the transaction
- Use unfair methods of competition
- Knowingly advertise any statement of fact which is untrue, misleading or deceptive
Investment adviser surety bond details
North Carolina investment adviser surety bonds will remain continuous throughout the adviser’s license period or until canceled by the surety. To cancel the bond, the surety must give the adviser and the secretary of the state of North Carolina written notice 30 days prior to the desired termination date.
Become an investment adviser
Investment adviser applicants must satisfy several criteria in addition to obtaining a surety bond to become registered with the state. These requirements include the following:
- $300 registration fee
- Minimum net worth of $10,000 (if applicant is investment adviser w/ discretionary authority)
- Minimum net worth of $35,000 (if applicant is investment adviser w/ custody of client funds or securities)
- Signed financial statements
- Signed surety bond
Investment advisers without a place of business in North Carolina are not required to register until they have had more than 5 clients residing in North Carolina within the past 12 months.
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- North Carolina Chapter 78C Investment Advisers
- North Carolina Article 2 Fraudulent and Prohibited Practices 78C-8 Advisory Activities
- Order Granting Temporary Relief for Investment Advisers Previously Exempt from Registration Under N.C.G.S 78C-16(a)(4)
- North American Securities Administrators Association North Carolina
- North Carolina Department of the Secretary of State: Frequently Asked Questions