Utah Investment Adviser Bond

A Utah Investment Adviser Bond is a type of surety bond required by the Utah Division of Securities for investment advisers operating within the state. It is also referred to as a Indemnity Bond of Investment Adviser. The required bond amount varies depending on the level of authority the adviser has over client funds:

• Discretionary Authority: If the adviser has the authority to make investment decisions on behalf of clients without their prior consent, a $10,000 bond is typically required.
• Custody of Funds: If the adviser has custody of client funds or securities, a $35,000 bond is usually necessary.

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 Utah Investment Adviser 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 Utah Investment Adviser 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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Who Needs This Surety Bond?

Investment advisers in Utah require a license and to obtain the license, must provide a Utah Investment Adviser Bond.  In Utah, an investment advisor is an individual that meets the following definition under the Utah Uniform Securities Act:

An investment adviser is a person who, for compensation, engages in the business of advising others, either directly or indirectly, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities.

This definition encompasses a wide range of activities, including:

• Providing investment advice: This includes recommendations on specific securities, investment strategies, or portfolio management.
• Managing client portfolios: This involves making buy, sell, or hold decisions on behalf of clients.
• Issuing reports or analyses on securities: This can include research reports, market commentaries, or other investment-related publications.
• Preparing financial plans: This includes creating comprehensive financial plans that involve recommendations for securities investments.
• Managing investment funds: This includes managing mutual funds, hedge funds, or other pooled investment vehicles.

It’s important to note that the definition of an investment adviser can be complex and subject to interpretation. If you’re unsure whether your activities require a license, it’s advisable to consult with the Utah Division of Securities or an attorney.

To learn more, you can refer to the following resources:

• Utah Division of Securities: https://securities.utah.gov/
• Utah Uniform Securities Act: https://le.utah.gov/xcode/Title61/Chapter1/61-1.html

By understanding the definition of an investment adviser and the licensing requirements in Utah, you can ensure compliance with state regulations and protect your clients’ interests.