What is a New Jersey Investment Adviser Bond?

Learn about the how-to of this important surety bond for investment advisers! 

New Jersey Investment Adviser BondIt is a financial guarantee mandated by the New Jersey Uniform Securities Law, and enforced by the Bureau Chief of the Bureau of Securities of the New Jersey Division of Consumer Affairs. 

The surety bond’s purpose is to protect the securities or clients’ funds that the investment banker has custody over.  

If the registered investment adviser misuses his or her client’s funds or securities, the Obligee of the surety bond will file for a bond claim in order to recover the amount lost. 

It will also be conditioned that the registered investment adviser will abide by the state laws and rules that governs the industry.  


What is the Investment Adviser Bond amount? 

The bond amount will differ per registered investment adviser. It will be determined by the Bureau Chief of the Bureau of Securities of the New Jersey Division of Consumer Affairs. 

The bond amount will not be greater than the limitations set forth in the Investment Advisers Act of 1940. 

If you have determined your bond amount, you may GET YOUR FREE SURETY BOND QUOTE to know how much you need to pay. 

Those who have excellent credit scores can pay as low as 1% of the bond amount! 


How can I get an Investment Adviser Bond? 

Here’s a step-by-step bonding process that we have made easier so that you can get your bond in no time: 

BOND APPLICATION  

You must first apply for this type of surety bond. If you are ready to do this now, you may APPLY HERE! 

Our expert surety bond agent will guide you through the entire process – from the time you have applied until the bond is issued to you. 

ASSESSMENT  

Next, you will be asked to submit a few important information that our underwriter will need to assess the following: 

  • Your job or business history 
  • Your credit score 
  • Your financial strength 

To avoid any delays, make sure that you have gathered the right information needed prior to submitting.  

BOND ISSUANCE 

Once the underwriting process is done, we will immediately issue your bond and send it to you right away!  


What are the surety bond conditions? 

  • The surety bond should be executed by a New Jersey-authorized Surety 
  • The registered investment adviser should abide by the provisions of the New Jersey Uniform Securities Law, as well as the rules and regulations of the Bureau of Securities of the New Jersey Division of Consumer Affairs 
  • If the registered investment adviser commits a valid violation, the aggrieved party will be eligible to file for a claim against the bond up to its face value 
  • The liability of the surety bond for claims should be brought within 2 years after the act upon which it is based 

Ready to apply? START HERE! 

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