What is a Minnesota Investment Adviser Bond?

A quick guide to one of the most important requirements for registered investment advisers or registration applicants!

 

Registered Investment Advisers, or those who are applying to become registered, that have discretionary authority over client funds or securities are required by the Minnesota Department of Commerce to furnish a surety bond.

 

The requirement is adopted from § 80A.66 of the Minnesota Statutes and § 2876.4115 of the Minnesota Administrative Rules.

 

An Investment Adviser’s duties are the following:

  • Directly or indirectly advises others regarding the value of securities
  • Gives advice regarding purchasing, investing in, or selling securities
  • Issues analyses or reports concerning securities
  • Act as financial planner who provides investment advisory services

 

What is the amount of the bond?

The minimum bond amount is $25,000, while the maximum bond amount is $100,000.

 

Those who have excellent credit scores may qualify for a very low bond premium or just 1% of the bond amount!

 

Find out what you need to pay by getting your FREE quote here!

 

What are the bond conditions?

  • The bond should be issued by a corporate surety who is authorized to conduct business in the State of Minnesota such as Surety Bond Authority
  • The surety bond should be written on the form approved by the administrator
  • The investment adviser is required to comply with the provisions of § 80A of the Minnesota Statutes, § 2876.5023 of the Minnesota Administrative Rules, the rules and regulations of the Minnesota Department of Commerce, and all the other applicable rules
  • If the investment adviser commits a valid violation, the aggrieved party will be eligible to file a claim on the bond

 

How can I obtain an Investment Banker bond?

To secure this type of bond, the registered investment banker or registration applicant must seek the assistance of a surety bond company.

 

You will be asked to apply for this bond. If you’re ready to ensure for one right now, you may easily do so here.

 

Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.

 

An underwriter will then evaluate the following:

  • Your financial strength
  • Job/business performance history
  • Your credit score

Once the prequalification process is fulfilled, we will execute the bond and send it to you!

 

Are you ready to start on this bond? Apply HERE!