Virginia Investment Advisor Bond Guide
If you are working as an investment advisor in Virginia, you'll need to purchase a surety bond. Read on to learn all about the bonding process.
Bond Overview
- Purpose: To guarantee compliance with the Virginia Securities Act
- Who Needs It: Investment advisors with custody over client funds
- Regulating Body: The State Corporation Commission (SCC), Division of Securities and Retail Franchising
- Required Coverage: $25,000
- Premium Rate: Credit-based, starting at $375
What Is a Virginia Investment Advisor Bond?
A Virginia investment advisor bond is required for certain registered advisors to guarantee compliance with the Virginia Securities Act.
It protects client funds and interests by creating financial liability for advisors that handle funds or accept sizable prepayments.
How Much Do Investment Advisor Bonds Cost in Virginia?
You can get a Virginia investment advisor bond starting as low as $375 with SuretyBonds.com. Some of our surety markets also offer a 25% multi-year discount.
Exact pricing varies from 1.5% to 10% based on personal credit score. Apply for your free quote today.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Virginia Investment Advisor Bond Work?
As with all surety bonds, an investment advisor bond creates a legal contract between three parties:
- Principal: The investment advisor
- Obligee: The Virginia SCC, Division of Securities and Retail Franchising
- Surety: The underwriting surety provider
As the principal, you are responsible for upholding the bond terms. If you fail to do so, the state or harmed clients can file bond claims to repay damages.
Who Needs an Investment Advisor Bond?
If you have custody over client funds or require large prepayments, you may need to file a $25,000 surety bond as proof of financial security. Alternatively, you can prove a net worth of $25,000.
Verify with the SCC whether or not you need a surety bond before purchasing.
How Do I Get Bonded?
We make the bonding process easy and fast for Virginia investment advisors. Just follow these quick steps:
- Apply for a free quote
- Pay the online invoice
- Select your shipping method
- Sign and file the original bond with the SCC
If you have any questions, call our surety experts at 1 (800) 308-4358.
How Fast Can I Get My Bond?
We provide most bond quotes within one business day and ship orders placed before 4 pm CST the same day. Apply now to get started!
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get bonded with bad credit. However, please note that credit score may impact your premium rate.
How Do I Renew My Investment Advisor Bond?
You need to renew your Virginia investment advisor bond annually. We’ll send you email and text reminders before the expiration date.
Simply pay your online invoice to maintain active coverage for another year. We’ll do the rest!
How to Become a Licensed Investment Advisor in Virginia
To receive an investment advisor license, you’ll need to apply with the Virginia State Corporation Commission's (SCC) Division of Securities and Retail Franchising.
Apply online through FINRA and submit all required forms and fees. Find more licensing resources linked below.
