North Carolina Investment Adviser’s Bond

A North Carolina Investment Adviser’s Bond is a type of surety bond required by the North Carolina Securities Division for investment advisers operating within the state. The bond amount for investment advisers in North Carolina varies depending on specific criteria, but it typically falls within the range of $10,000 to $50,000. (See Below). The cost of the surety bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150.

How to Get a North Carolina Investment Adviser’s Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the North Carolina Investment Adviser’s Bond will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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Determining the Surety Bond Amount

While there’s no exact formula for determining the bond amount for a North Carolina investment adviser, the following factors significantly influence the final figure:

Key Factors:

• Custody or Discretionary Authority: Advisers with custody of client funds or securities typically require a $35,000 bond.
• Advisers with discretionary authority over client funds or securities typically require a $10,000 bond.
• Assets Under Management: A higher volume of assets might necessitate a higher bond amount, even if the adviser doesn’t have custody or discretionary authority.
• Number of Clients: A larger client base could also influence the bond amount.
• Business History and Financial Stability: A strong financial history and stable business operations might lead to a lower bond amount.

The bond amount is specifically mandated by the North Carolina Securities Division so check with them prior to applying for the bond.

Steps to Obtain a NC Investment Advisor’s License

According to North Carolina law, an investment adviser is any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing or selling securities. To be an investment advisor in the state, you must be licensed.

To obtain an investment adviser license in North Carolina, you must follow these general steps:

• Meet the Definition of an Investment Adviser:
  • Ensure your business activities align with the North Carolina definition of an investment adviser.
• Form a Legal Entity:
  • Determine the appropriate legal structure for your business (sole proprietorship, partnership, corporation, LLC, etc.).
• Register with FINRA’s Central Registration Depository (CRD):
  • Create a Central Registration Depository (CRD) account for your firm.
  • This is a centralized system used by securities regulators to collect and maintain information about investment advisers and their representatives.
• Pass the Required Exam:
  • At least one individual associated with your firm must pass the Series 65 Uniform Investment Adviser Law Examination or a combination of the Series 7 General Securities Representative Examination and the Series 66 Uniform Combined State Law Examination.
• Complete the North Carolina Investment Adviser Registration Application:
  • File Form ADV (Parts 1 and 2) electronically through the Investment Adviser Registration Depository (IARD) system.
  • Pay the required filing fee.
  • Provide any additional information requested by the North Carolina Securities Division.
• Obtain a Surety Bond:
  • Purchase a North Carolina Investment Adviser’s Bond to protect investors.
  • The bond amount is determined by the North Carolina Securities Division.
• Satisfy Background Check and Disclosure Requirements:
  • Submit required background checks and disclosures for you and your associated persons.

Important Note: This is a general overview, and specific requirements may change. It’s essential to consult the North Carolina Securities Division for the most accurate and up-to-date information.