Maine

Investment Adviser Bond

What Is a Maine Investment Adviser Bond?

A Maine investment adviser bond is a financial guarantee that you will fulfill license requirements and follow state law. The bond protects clients from potential harm as a result of financial fraud or malpractice. 

Who Needs an Investment Adviser Bond?

The Maine Department of Professional & Financial Regulation — Office of Securities requires all licensed investment advisers who don’t meet minimum net worth requirements to have a surety bond. Bond coverage requirements vary based on firm net worth.

Bond Coverage Requirements 

Maine requires investment adviser licensees to have a minimum net worth. The net worth requirement depends on the level of custody and discretion you have over a client's funds:

• Custody of client funds: Minimum net worth of $35,000
• Discretion over client funds: Minimum net worth of $10,000
• No discretion or custody of funds: Any positive net worth — no surety bond needed

If your net worth does not meet the minimum requirements, you need a surety bond to cover the difference. Bond coverage is calculated based on the net worth deficiency rounded to the nearest $5,000. For example, if your net worth is $10,000 but you need to meet the minimum of $35,000, you need a $20,000 surety bond to make up for the difference.

How Much Do Investment Adviser Bonds Cost?

Maine investment adviser bond costs vary based on the required coverage amount and your credit score. Most applicants qualify for the starting premium of 1.5%!

For example, if you select the $10,000 coverage, you’ll pay as low as $150. Apply for a free quote today!

How Does a Maine Investment Adviser Bond Work? 

When you get an investment adviser bond, you enter a three-party legal agreement. 

How Do I Get My Bond?

Get your investment adviser bond by following these quick steps:

1. Select the appropriate coverage
2. Apply for a quote
3. Pay and select a shipping method
4. Get your bond in the mail
5. File your bond with the Office of Securities

How Fast Can I Get My Bond?

You’ll get a quote within one business day or less. The DPFR requires the physical bond form to be filed. We offer overnight, two-day and three-day shipping. 

How Do I File My Bond?

File your bond form by sending it to one of the following addresses:

Mailing Address:

Office of Securities

121 State House Station

Augusta, ME 04333

Courier Address:

Office of Securities

76 Northern Avenue

Gardiner, ME 04345

Can I Get Bonded With Bad Credit? 

We approve 99% of applicants. However, if you’re concerned about qualifying, read about our Bad Credit Options. 

How Do I Renew My Investment Adviser Bond?

These bonds expire annually. You’ll receive renewal reminders starting 90 days before the expiration date. 

First, ensure the coverage amount is still correct. Then, renew your bond by paying the renewal invoice.

How Do I Update My Bond Information?

If you need to update simple information like name, address and coverage amount, contact our Customer Care team:

• [email protected]
• 1(800)308-4358

Smaller updates can be made through a bond rider, while larger updates may require a new bond form.

How to Get an Investment Adviser License in Maine

Complete the following steps to register as an investment adviser in Maine:

1. Complete the initial application: Form ADV
2. Pay the $200 application fee
3. File a U4 and pay registration fees, if applicable*
4. Register each branch office and pay the $50 registration fee, if applicable
5. Pass required securities exams*
6. Provide financial statements
7. Provide written supervisory procedures
8. File a surety bond in the appropriate amount
9. Submit fingerprints
10. Provide client agreements
11. Attend seminars for new advisers and sole proprietor

*Note: These tasks are required if you are a sole proprietorship/proprietor — an unincorporated business owned and run by one person.

Refer to the NASAA and Office of Securities for more registration requirement information.