North Carolina Investment Adviser Bond Overview
- Purpose: To protect clients from financial harm if an investment advisor breaks regulations
- Who Needs It: All investment advisers in North Carolina
- Regulating Body: The North Carolina Secretary of State, Securities Division
- Bond Amount: $10,000; or $35,000 if you have custody of client funds
- Minimum Price: $150 or 1.5%; credit-based
What Is a North Carolina Investment Adviser Bond?
A North Carolina investment adviser bond protects consumers by ensuring advisers uphold all regulations and act honestly.
The North Carolina Securities Division requires this bond as part of the licensing process for registered investment advisers (RIAs) in the state.
Who Needs an Investment Adviser Bond?
In North Carolina, all investment advisers need a surety bond. An investment adviser is defined as: any person who provides direct or indirect advice about investing in securities for compensation. This includes financial planners and financial service providers that offer investment advisory services.
Investment Adviser Bond Coverage Requirements
Your required bond amount will depend on whether you have custody of client funds.
- $10,000 bond: No custody over client funds or securities
- $35,000 bond: Custody over client funds or securities
How Much Do Investment Adviser Bonds Cost in North Carolina?
The $10,000 NC investment adviser bond starts at $150 and the $35,000 bond starts at $525. Your personalized rate will be between 1.5% and 10% based on your credit score and other risk factors. Apply now for your free quote.
How Does a North Carolina Investment Adviser Bond Work?
A North Carolina investment advisor bond is a legal contract between three parties.
| Bond Party | Description |
|---|---|
| 1) Principal | The investment adviser filing the bond |
| 2) Obligee | The North Carolina Secretary of State, Securities Division |
| 3) Surety | The issuing surety provider |
Harmed parties can file bond claims if advisers do any of the following:
- Employ any fraudulent device or scheme
- Intentionally sell or buy any security from a client as a principal
- Act as a broker for another client to effect a sale or purchase without written disclosure
- Use unfair methods of competition
- Use misleading or deceptive advertising
How Do I Get an Investment Adviser Bond in North Carolina?
SuretyBonds.com provides the fastest and easiest way to get an investment adviser surety bond. Follow these simple steps:
- Apply Online: Enter your information to receive a personalized quote
- Pay Invoice: Complete your purchase online or over the phone
- Receive Bond: Receive your official bond form via email
Upon receipt, file the official bond with the Securities Division as instructed.
How Fast Can I Get My Bond?
SuretyBonds.com issues investment advisor bonds faster than any other provider. We process most applications same-day and deliver these bonds via email shortly after purchase.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get bonded with bad credit. However, poor credit will typically increase your premium rate.
Apply for a free quote or visit our Surety Bond Cost FAQ page to see how credit may impact your cost.
How Do I Renew My Bond?
These bonds expire annually. To renew your investment adviser bond, simply pay your renewal invoice when prompted.
Afraid you’ll forget? Don’t worry! We’ll start contacting you 90 days before the expiration date with helpful reminders.
How to Become an Investment Adviser in North Carolina
To become a registered investment adviser in North Carolina, you’ll need the following:
- $300 registration fee
- Minimum net worth of $10,000 (if applicant is investment adviser w/ discretionary authority)
- Minimum net worth of $35,000 (if applicant is investment adviser w/ custody of client funds or securities)
- Signed financial statements
- Signed surety bond
Out-of-state investment advisers don’t need to register until they have had more than five clients who live in North Carolina within a 12 month period.
