What is a North Carolina Investment Adviser Bond?
A quick guide to one of the most important requirements for investment advisers in North Carolina!
What is an Investment Adviser Bond?
Investment advisers who have direct possession of or discretionary authority over his or her clients’ funds are required to procure a surety bond.
A surety bond will serve as a financial guarantee to the North American Securities Administrators Association as well as to the Secretary of State, State of North Carolina that the investment adviser will conform to his or her legal responsibilities when performing transactions for the client.
It will also be conditioned that the investment adviser will compensate any person who will suffer losses from any potential wrongful acts that he or she might commit. The compensation will be retrieved by filing a claim against the surety bond.
This requirement is in accordance with 18 06A .1705 of the North Carolina Administrative Code.
What is the Investment Adviser Bond amount?
The bond amount is $35,000.
If you have an excellent credit score, you will be eligible to pay for a low bond premium, or just 1% of the bond amount!
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get an Investment Adviser Bond?
In order to secure this type of bond, the investment adviser must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply 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
- Your job/business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
What are the surety bond requirements?
- The surety bond should be executed by a North Carolina-authorized surety bond agent or company
- The bond should be written on Form NCIAB (North Carolina Securities Division Investment Adviser’s Bond)
- The investment adviser is obligated to comply with the provisions of Sections 18 06A .1702 until 18 06A .1808 of the North Carolina Administrative Code, Chapter 78C of the North Carolina General Statutes, the rules and regulations of the North American Securities Administrators Association, and the Secretary of State, State of North Carolina
- If the investment adviser violates any of the applicable statutes, rules, and regulations, the Obligee will be eligible to file a claim against the bond for the benefit of any aggrieved party