What is Utah Investment Adviser Bond?
A quick guide on how to obtain this bond and what it’s for!
The Division of Securities of the Utah Department of Commerce requires Investment Advisers who have discretionary authority or have custody over a client’s fund to post a surety bond.
The requirement is in pursuance of Title 61 Chapter 1 of the Utah Code Annotated or the Utah Uniform Securities Act.
An Investment Adviser is a person who advises clients regarding investing, purchasing, or selling securities. As part of their duty, an Investment Adviser provides reports regarding securities and manages the client’s securities portfolio as well.
What is the bond amount?
$10,000 – for Investment Advisers with discretionary authority over a client’s funds or securities
$35,000 – for Investment Advisers who has custody over a client’s funds or securities
If you have an excellent credit score, you may be eligible to pay a very low bond premium or just 1% of the total bond amount!
Find out you need to pay for this bond today! Get your FREE quote here!
What are the Investment Adviser bond conditions?
- The bond should be issued by a corporate surety who is authorized to conduct business within the state and is licensed by the Utah Department of Insurance
- The surety bond should be made payable to the State of Utah
- The surety bond should be written on the Division of Securities of the Utah Department of Commerce Form 4-5BIA, Corporate Indemnity Bond of Investment Adviser. A similar form that is approved by the Division may be used as well
- The Investment Adviser should comply with the provisions of Title 61 Chapter 1 of the Utah Code Annotated or the Utah Uniform Securities Act, the rules and regulations of the Division of Securities of the Utah Department of Commerce, and all the other applicable rules
- If the Investment Adviser commits a valid violation, the aggrieved party will be eligible to claim the surety bond
- In case of cancellation, a 60-day notice is required
How can I obtain an Investment Adviser bond?
To secure this type of bond, the Investment Adviser license applicant must seek the assistance of a surety bond company.
You will be asked to apply for this bond.
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!
Ready to get started on this bond? Apply here today!