Virginia Investment Advisor Bond |
AmeriPro Surety Bonds
Investment Advisors – Virginia
A Virginia investment advisor must maintain certain net worth requirements according to the Administrative Code 21VAC5-80-180.
In lieu of the net worth requirements, a surety bond, offered by AmeriPro Surety Bonds as both a new and renewal bond, is required according to state regulations.
Virginia Investment Advisor Bond: Amount of the Surety Bond and the Premium
The Virginia investment advisor bond is a $25,000 required in some cases by the state’s Division of Securities and Retail Franchising.
The bond’s premium (or, the cost to you) will be determined by a surety bond application and a credit check. An applicant with good credit may typically pay about 1% annually for the investment advisor bond; however, the amounts may vary depending on information provided on your surety application and your credit score.
Virginia Investment Advisor Bond: Of Whom This Bond is Required
Investment advisors in the Commonwealth must maintain a net worth of at least $25,001.
If your net worth, for whatever reason, falls below $25,001, you must either, within 24 hours,
- Bring your net worth back above that threshold such that no surety bond is required;
- Obtain a $25,000 surety bond.
Since the Virginia investment advisor bond is time sensitive, our agency can have this surety bond mailed overnight for the next business day delivery. We may also send you a copy (typically unsigned) of the bond after its purchase; however, the Commonwealth may or may not accept a copy of your bond. You will want to check with them for clarification.
Investment advisors whose net worth is above $25,000 are not required to obtain a surety bond.
The Purpose of this Surety Bond:
While the surety bond is in some cases required of investment advisors, its purpose is to protect customers of the advisor —the Commonwealth and the residents of Virginia.
The bond is a financial guarantee that an investment advisor will be in compliance with all rules, regulations, additions, and amendments regarding professional advisory.
The bond protects against acts of malfeasance, misfeasance, and other wrongful acts whether committed by an advisor, or any employees, agents, and managers of the same.
As principal of this surety bond, you maintain responsibility to reimburse the surety for any claims paid against your bond should that ever occur.
Can the Virginia Investment Advisor Bond Be Canceled After Purchase?
A question may arise: If, after having purchased the $25,000 Virginia investment advisor bond, my net worth becomes such that the surety bond is no longer required, may I cancel the bond and receive a refund?
Answer: No; while you may cancel this surety bond if you choose to do so, once the premium has been paid, it is fully earned. Another option is to let the bond expire and not renew it.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, contractor, court, and fiduciary surety bonds throughout Virginia.
Our agency also provides surety bonds nationwide.
Please call our agency today for immediate assistance with your surety bond at:
Or, you may fill out the form below and an agent will contact you…