What is an Alabama Investment Adviser or Broker-Dealer Bond?

Learn all about this Alabama surety bond today!

You need an Investment Adviser or Broker-Dealer surety bond if you:

  • Have custody of client funds or securities
  • Have a discretionary authority over your clients’ accounts
  • Do not have the minimum net capital of $10,000.00

If you qualify for any of the criteria mentioned above, read on to find out how you can acquire these surety bonds!

 

What is an Investment Adviser or Broker-Dealer Bond?

A surety bond is part of the registration requirement for Investment Advisers and Broker-Dealers within the state.

 

Its purpose is to ensure that registered Investment Adviser or Broker-Dealer will faithfully perform their duties by the rules set forth by the Alabama Securities Commission, as well as the law of the state.

 

The surety bond will also serve as a guarantee that the client or clients will be compensated from a violation committed by their Investment Adviser or Broker-Dealer.

 

The requirement by Section 8-6-3 of the Code of Alabama.

 

What is the Investment Adviser or Broker-Dealer bond amount?

The bond amount is $50,000.

 

If you have a stellar credit score, you will be eligible to pay for a low bond premium or as little as 1% of the bond amount!

 

Know what you need to pay today by getting your FREE SURETY BOND QUOTE HERE!

 

What are the bond conditions?

  • The surety bond should be issued by a surety bond agent or company that is authorized to conduct business in Alabama
  • The surety bond should be made payable to the State of Alabama
  • The registered investment adviser or broker-dealer is obligated to abide by the provisions of Section 8-6 of the Code of Alabama, the rules and regulations of the Alabama Securities Commission, and all the other applicable rules
  • If the registered investment adviser or broker-dealer commits a valid violation, the aggrieved party will be eligible to file a claim on the surety bond
  • The surety bond will run concurrently with the Investment Adviser or Broker Dealer’s registration period

 

How can I get an Investment Adviser or Broker-Dealer Bond?

You can easily get this type of bond from us!  Don’t worry. We will guide you through the whole process. We will make sure that you will understand what you will be getting into.

 

First, you need to submit an application.

 

If you are ready to do that now, you may APPLY HERE!

 

Once we have received your application, we will ask you to provide us with some important information needed for the underwriting process. These will include the following:

  • Your financial history
  • Your business history
  • Your credit score

An underwriter will carefully evaluate all the information that you will give us. Once this process has been fulfilled, we will immediately issue the bond and send it to you!

 

Need more information about this bond? Talk to one of our experts at 800-333-7800!