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Alabama Investment Adviser Surety Bond

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

Investment Adviser License Requirements:

  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. Written statement as to whether the firm maintains custody and/or has discretionary authority of client funds.
  6. De Minimis- Alabama Code 1975§8-6-3 details the various exemptions for registration.

Alabama Investment Adviser Surety Bond and Net Capital Requirements:

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

How Much Will This Bond Cost?

The premium that you pay for an Alabama Investment Adviser Surety 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
Read our blog, Do You Need An Investment Adviser Bond?

More Surety Bond Questions?

Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.

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