Nebraska Investment Adviser or Broker-Dealer Bond Guide
If you are working as an investment adviser or broker-dealer in Nebraska, you may need to purchase a surety bond. Read on to learn all about the bonding process.
Bond Overview
- Purpose: To ensure individuals uphold the Securities Act of Nebraska and protect clients
- Who Needs It: Investment advisers and broker-dealers working in Nebraska
- Regulating Body: The Nebraska Department of Banking and Finance
- Required Coverage: $25,000
- Premium Rates: Start at $375, credit-based
How much does an investment adviser or broker-dealer bond cost in Nebraska?
The Nebraska Department of Banking and Finance requires the state’s investment advisers and broker-dealers to post a $25,000 surety bond. Premiums are determined during an underwriting process that involves a review of the applicant’s credit report. Don’t worry if you have credit issues — SuretyBonds.com can approve 99% of applicants through our exclusive bad credit bonding program.
The best way to determine your exact bond cost is to contact a surety expert by calling 1 (800) 308-4358. Or, contact us online to request your free surety bond quote now.
Why do I need a Nebraska investment adviser bond?
Nebraska investment adviser and broker-dealer bonds ensure that principals (advisers or broker-dealers) comply with the rules and regulations stated in Section 8 of the Securities Act of Nebraska. Some of these terms include:
- working only once registered and maintaining proper registration and bonding
- employing only registered advisers
- keeping stated place of business or notifying the Department of any changes
- passing all necessary exams
- keeping up-to-date records
- avoiding any false or misleading advertising
Considerations for Nebraska Investment Adviser bonds
This bond form covers both investment advisers and broker-dealers, so applicants must indicate the desired license type during the bonding process. The principal’s signature must be witnessed by a licensed notary.
These bonds are effective for the entirety of the adviser’s registration period. The surety can only cancel the bond by giving 30 days' written notice of cancellation to the Nebraska Department of Banking and Finance.
How to become an investment adviser or broker-dealer in Nebraska
- Provide a $200.00 application fee through the Investment Adviser Registration Depository (IARD).
- ADV and all applicable schedules must complete the following forms:
Form ADV Part 1, including the “State-Registered Investment Adviser Execution Page,” and applicable schedules A-D must be submitted electronically through IARD
Form ADV Part 2 must be submitted electronically through IARD - Provide the following documents:
Affidavit of Investment Adviser Activity in Nebraska
Current audited financial statement
Copy of the adviser’s Articles of Incorporation
Corporate Resolution
$25,000 surety bond
Samples of promotional and/or disclosure literature - File or amend Form U4 or file Form U5 through IARD to signal who is serving as investment adviser representatives for the adviser.
Anyone providing investment advice or soliciting clients on behalf of a state-registered investment adviser must be registered as an investment adviser representative.
