Investment advisers in North Carolina are regulated and overseen by the Securities Division of the North Carolina Secretary of State.
Bond requirements are determined by the nature and net worth of the investment adviser.
In North Carolina, an investment adviser who has discretionary authority over the account of clients must:
If the NC investment adviser has custody of the clients’ funds and securities, then the investment adviser must have a minimum net worth of $35,000, or obtain a $35,000 surety bond.
Therefore, for North Carolina investment advisers who are required to obtain a surety bond, the amount required is $35,000.
According to state law , North Carolina investment advisers are also subject to surprise audits to ensure compliance with net worth amounts.
In individual cases, a surety bond with a higher bond amount (up to $100,000) may be required.
The cost, or premium, of the North Carolina adviser bond is determined by:
An applicant with good credit may pay as little as 2% or so for this surety bond; however, the amount that you will pay will be determined by the criteria mentioned above.
AmeriPro Surety Bonds will work to find you the best surety bond agency pricing.
Once issued, the NC investment adviser bond is good for one year from the date of issuance.
Whether or not you will be required to renew this surety bond will be determined by the criteria mentioned above; however, to be sure, you will want to verify this with the state’s licensing entity.
The North Carolina investment adviser bond is a financial guarantee for your customers that a licensed investment adviser will maintain proper custody and act in a proper fiduciary capacity over the accounts of customers.
The surety bond protects customers from acts of fraud, theft, or criminal malfeasance committed by an investment adviser during the course of professional duties.
While the bond’s requirement is based on the investment adviser’s net worth, its protection is solely for the benefit of customers who can credibly demonstrate a financial harm caused by a failure of an investment adviser to act legally.
AmeriPro Surety Bonds is a surety bonds-only agency which provides license and permit, contractor, court, and fiduciary surety bonds throughout North Carolina.
Our agency also provides surety bonds nationwide.
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