Virginia Investment Advisor Surety Bond

The Commonwealth of Virginia State Corporation Commission, Division of Securities and Retail Franchising, regulates securities and registration of securities professionals. It is also responsible for trademarks and franchise registration, investor education programs, following up on complaints and investigating code violations and auditing of securities financials and for investment advisor and broker dealer registration. Investment advisors must register prior to providing any investment related services. In certain instances, a surety bond may also be required. The surety bond ensures compliance of state laws and honest and ethical performance of duties. The Virginia Securities Act provides details that investment advisers must meet for the registration process.

Surety Bond and Registration Requirements:

1. Payment of a filing fee and application for registration through IARD with any required attachments.
2. Provide samples of client contracts and agreements.
3. Submit a balance sheet that is in compliance with the state’s net worth or net capital requirements (GAAP).
4. Maintain a minimum net worth of $25,000 or more.
5. A $25,000 surety bond is required if the business minimum net worth drops below $25,001.
6. Registration expires December 31 of each year.
7. De Minimis: out-of-state applicants are not required to register until there are 5 clients or more in any prior twelve month period.

How Much Will a Virginia Investment Adviser Bond Cost?

The premium that you pay for a Virginia Investment Adviser Surety Bond is dependent on credit. Our rates for a $25,000 bond start at $375 with good credit. Contact our Surety Bond Agents for a free quote.

Did You Know?

A sole proprietor investment adviser must register both as a firm and a representative separately.

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