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Will An Alabama Investment Adviser Be Required To Obtain A Bond For Registration?

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Investment Advisers in Alabama may need to obtain an Alabama Investment Adviser Surety Bond to be compliant with state laws.

The State of Alabama Securities Commission administers the financial Investment Adviser program and has oversight of the professional registration, as well as handling of consumer complaints and auditing.

Pursuant to the Code of Alabama 1975, §863, and Commission Rule 830X3, investment advisers must meet conditions set forth by law. This includes:

1. Payment of a filing fee and application for registration through IARD with any required attachments.

2. Use of a written client contract or agreement.

3. Producing a balance sheet prepared by GAAP standards prepared no more than 90 days prior to the application process. A minimum net capital of $10,000 must be maintained or a $50,000 surety bond will be required.

4. A signed statement by an authorized officer must accompany the balance sheet affirming that all information attached is true and correct.

5. A $50,000 surety bond is required if the investment adviser:

  1. Maintains custody of client funds or securities; or
  2. Has discretionary authority over customer accounts; or
  3. Has less than the minimum $10,000 net capital required

6. Written statement as to whether the firm maintains custody and/or has discretionary authority of client funds.

7. De Minimis- Alabama Code 1975§8-6-3 details the various exemptions for registration.

How Much Will This Bond Cost?

The premium that you pay for an Alabama Investment Adviser Bond is dependent on credit.

Did You Know?

Registration fees for Investment Advisers is $250. Fees for Investment Adviser Representative is $60.

Related Links:

Alabama Securities Commission : Application Requirements for Investment Advisers
North American Securities Administrators Association

How Do I Get Bonded?

You can Apply online or contact our Surety Bond Specialists today at:

Phone: 1‑844‑432‑6637
Emailinfo@suretygroup.com
Fax:     404-351-3237
Hours: 8:00-5:00 CST, Monday through Friday




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