Nebraska Investment Adviser Bond Overview
- Purpose: To guarantee compliance with the Nebraska Securities Act
- Who Needs It: All investment advisers and broker-dealers who don’t meet the net capital requirement
- Regulating Body: The Nebraska Department of Banking and Finance
- Bond Amount: $25,000
- Minimum Price: $375, credit-based
What Is a Nebraska Investment Adviser or Broker-Dealer Bond?
A Nebraska investment adviser (IA) or broker-dealer bond is a financial security that protects clients and the state from license violations.
The Nebraska Department of Banking and Finance (NDBF) requires all IAs and broker-dealers to file proof of $25,000 in net capital or a surety bond.
How Much Do IA or Broker-Dealer Bonds Cost in Nebraska?
Nebraska investment adviser and broker-dealer bonds start at $375, or 1.5% of the bond amount. Your exact rate will vary based on your personal credit score. Apply for a free quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Investment Adviser Bond Work?
Like all surety bonds, a Nebraska investment adviser bond forms a legal contract between these three parties.
| Bond Party | Description |
|---|---|
| Principal | The investment adviser or broker-dealer purchasing the bond |
| Obligee | The Nebraska Department of Banking and Finance requiring the bond |
| Surety | The issuing surety provider |
This bond holds you financially responsible for following the Nebraska Securities Act. If you break the law, harmed parties can file claims against your bond. The surety will pay valid claims, but you must reimburse the full amount paid.
How Do I Get Bonded?
If you’re ready to start the bonding process, fill out the form on this page. We’ll run a soft credit check and send you a free quote within one business day.
After payment, you’ll receive the official bond form via email. Be sure to sign and file it with the NDBF.
How Do I Renew My Bond?
Nebraska investment adviser and broker-dealer bonds expire annually. Starting 90 days before renewal, we’ll send you periodic reminders with an invoice. Just pay the premium to extend your bond for another year.
Can I Make Changes to My Bond?
You can usually make minor changes to your bond form by emailing [email protected]. We’ll issue a bond rider, if possible, to file with the NDBF.
How to Become an Investment Adviser or Broker-Dealer in Nebraska
All IAs and broker-dealers need to register with the Nebraska Department of Banking and Finance.
Investment Adviser Registration
To register as an IA in Nebraska, submit the following materials through the IARD website:
- Form ADV
- Form U4
- Affidavit of Investment Adviser Activity in Nebraska
- Audited financial statement
- Articles of incorporation
- Corporate Resolution
- Sample contracts
- Surety bond or proof of net capital
- $200 application fee
Broker-Dealer Registration
If you’re a Financial Industry Regulatory Authority (FINRA) firm, you must register directly through FINRA’s Central Registration Depository (CRD).
All non-FINRA firms must submit the following to the NDBF:
- Form BD
- Affidavit of Broker-Dealer Activity in Nebraska
- Audited financial statement
- Articles of incorporation
- Corporate resolution (if applicable)
- A letter with your designated principal’s name and CRD number*
- Surety bond or proof of net capital
- $250 application fee
*Designated principals must pass the Series 63 or 66 and Series 24, 26 or 39 exams.
What’s the Difference Between IAs and Broker-Dealers?
Investment advisers provide investment advice but cannot sell securities. They make money by charging a fee or a percentage of assets under management. Broker-dealers buy and sell securities and typically earn a commission on each transaction.
Many firms register as both so they can provide investment advice and sell securities. The registration your firm needs depends on the services you plan to offer.
