Investment Advisor Bond Guide
Investment advisors in most states need a surety bond as part of the licensing process. Learn how they work and get a free quote with this guide.
Bond Overview
- Purpose: To guarantee consumers are protected from financial harm if an investment advisor breaks licensing regulations
- Who Needs It: Registered investment advisors, broker-dealers and financial advisors in several states
- Required Amounts: Often $5,000–$10,000, based on the state
- Premium Rates: Typically 1–2% of the coverage amount
What Is an Investment Advisor Surety Bond?
Investment advisor bonds ensure that advisors are authorized to appoint representatives to assist them in rendering advice regarding securities.
These bonds are also referred to as:
- Financial advisor bond
- Registered investment advisor (RIA) bond
- Broker-dealer bond
The broker-dealer bond guarantees that advisors report the correct names and addresses of employed representatives and comply with state rules and regulations.
How to Get an Investment Advisor Surety Bond
SuretyBonds.com provides the fastest and easiest investment advisor bonding process:
- Step 1: Once you know the exact bond you need, purchase it online or call our office.
- Step 2: Receive your bond. Depending on your obligee’s requirements, we'll ship you physical documents or e-mail you a digital document to file.
- Step 3: File your bond with the obligee per their instructions.
Select your state below to start your application now:
How Much Does a Surety Bond Cost for an Investment Advisor?
Most investment advisor bonds are issued instantly for a flat rate, but some states require underwriting to determine pricing for each applicant. Annual premiums for underwritten investment advisor bonds typically start at 1.5% of the total bond amount, which varies by state.
For instant issue bonds, premiums are calculated at just 1% of the bond amount. Most states require a $5,000–$10,000 investment advisor bond, so costs start at just $50–$100 annually.
How Fast Can I Get My Finance Advisor Bond?
With SuretyBonds.com, you can get your digital bond form on the same day you purchase your bond. You'll receive a digital document set via e-mail once it's been issued. If your obligee requires physical documentation, you can select overnight shipping at checkout to expedite delivery.
Some investment advisor license surety bond requirements are reciprocal, which means if you get licensed and bonded in one state, you won't necessarily need to be licensed and bonded to work in other states. Many use the North American Securities Administrators Association's Uniform Surety Bond (U-SB) Form.
