Vermont Investment Advisor Bond Guide
If you are working as an investment advisor in Vermont, you'll need to purchase a surety bond.
Bond Overview
- Purpose: To hold advisors financially liable for following the Vermont Securities Act provisions
- Who Needs It: All investment advisors working in Vermont
- Regulating Body: The Vermont Department of Financial Regulation
- Required Coverage: $5,000–$49,999, based on liability
- Premium Rates: 1–15% of the bond amount, starting at $100
Use this guide to learn more about the bonding and license proces
What Is a Vermont Investment Adviser Bond?
A Vermont investment adviser bond guarantees registered advisers with custody or discretion over client funds will follow state regulations and laws.
The Vermont Department of Financial Regulation requires this bond to protect clients funds from fraud or mismanagement by advisers.
How Much Do Investment Adviser Bonds Cost in Vermont?
Vermont investment adviser bond rates are typically 1–3% of the total bond amount. That means with strong credit, you could pay as low as $100 for a $10,000 bond.
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SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs an Investment Adviser Bond?
The Vermont Department of Financial Regulation requires this bond for most registered investment advisors.
You may be exempt from the bond requirement if you do not have custody over client funds and/or if your net worth meets state requirements.
How Does a Vermont Investment Adviser Bond Work?
As with all surety bonds, an investment adviser bond creates a legal contract between three parties:
- Principal: You, the investment adviser filing the bond
- Obligee: The Vermont Department of Financial Regulation requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding all provisions of the Vermont Securities Act.
If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you are ultimately responsible for refunding the surety.
How Do I Renew My Bond?
To renew your investment adviser bond, simply pay your renewal invoice when prompted. We’ll begin contacting you by phone and email 90 days before the expiration date.
You’ll receive a continuation certificate to file with the Department of Financial Regulation as proof of ongoing coverage.