Alabama Investment Adviser Bond
AmeriPro Surety Bonds | 844-589-9732
Investment Advisers – Alabama
Investment advisers in Alabama are regulated and licensed by the state’s Securities Commission.
For many Alabama investment advisers, a $50,000 surety bond is also required. The surety bond form is called Form U-SB – Uniform Surety Bond Form. If any of the following are applicable to you as a licensee, you will also be required to obtain the surety bond as a prerequisite for licensing:
- You do not maintain a minimum net capital of $10,000;
- You maintain customer of client funds or securities;
- You have discretionary authority over any of your clients’ accounts.
Obtaining the surety bond will be the quickest and easiest part of your registration process.
Qualifying for the Bond; Premium
Applicants for the $50,000 Alabama investment adviser bond will complete a surety bond application (much of which can be taken over the phone by our agent; you will need to sign the application) and pay the annual premium of $750.00.
There is neither an underwriter review or credit check inquiry for this bond.
What this means for you is that after the application is completed and the premium is paid, the bond is issued immediately.
A copy of your surety bond can be emailed to you. The original copy — which you’ll need to sign as Principal before filing with the Securities Commission— will be mailed to you by the following business day, if not the same day.
Premium Prepayment Options
The Alabama investment bond bond, at a $750 premium, is active for one year from the date of issuance. You also have the option to prepay the surety bond for 2 or 3 years. Prepayment allows for greater intervals between renewals; it also allows you to save over year to year renewal of the bond’s premium.
The premium payment options – and savings to you – are as follows:
- If prepaid for 2 years, the premium is $1350, a $150 savings;
- If prepaid for 3 years, the premium is $1950, a $300 savings.
Purpose of this Surety Bond
The investment adviser bond serves as a financial guarantee that you will act in a proper fiduciary capacity over your clients’ funds and accounts. The bond allows those clients who can credibly demonstrate harm to be recompensed for loss. Applicable legislation regarding your duties can be found under Alabama Code Chapter 6.
AmeriPro Surety Bonds is a surety bonds only agency. We provide license and permit surety bonds throughout Alabama.
Our agency also provides surety bonds nationwide.
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