Massachusetts Investment Adviser Bond |
AmeriPro Surety Bonds | 844-589-9732
RICE – Massachusetts
RICE— the Massachusetts Registration Inspections, Compliance and Examination department requires certain investment advisers to obtain a surety bond in order to be in compliance with Commonwealth regulations.
AmeriPro Surety Bonds offers the investment adviser surety bond for your compliance.
The price is very low.
Massachusetts Investment Adviser Bond: Amount Required and the Premium
The Massachusetts investment adviser bond is a $10,000 surety bond required of those investment advisers who:
- Are domiciled in the Commonwealth;
- And who maintain discretionary authority over client funds.
The law mandating the surety bond actually states that amount required is not less than $10,000. Our experience, however, is that this is a $10,000 surety bond (state legislation 950 CMR 12.205).
Applicants for the MA investment adviser bond will complete a surety bond application and submit to a credit check.
Typically, the bond price is just above $130 for a year. Options may also exist to prepay the bond for up to 3 years, thereby offering you a savings over a year to year renewal.
The Purpose of this Surety Bond
The purpose of the Massachusetts investment adviser bond is to serve as a financial guarantee that you will be in compliance with all laws and regulations regulating maintaining discretionary authority over clients’ portfolios.
While required of you, the surety bond is for the benefit of your clients.
The existence of the surety bond protects your clients against acts of misfeasance and malfeasance in the administration of their portfolios.
Such protections would also extend to any wrongdoing committed by employees, agents, and managers of your investment adviser entity.
As principal of the bond, you are responsible for any claims paid by the surety; however, the aggregate of such claims that would be paid by the surety will not exceed the $10,000 limit (unless you are required to obtain a bond with a different amount).
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit surety bonds throughout Massachusetts and New England.
We also provide surety bonds nationwide.
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