Arizona securities dealers who haven’t registered under the Securities Exchange Act of 1934 must hold a Securities Dealer Bond. Jet offers this bond as a financial guarantee to the Arizona Corporate Commission ("Commission") to cover payment of up to $25,000 to the public should they sustain financial injury from fraudulent behaviors of a security dealer.
Jet provides this bond without middlemen brokers or agents to give you a stress free and fairly priced bond.
The price for the bond can be as low as $100 with Jet. However, the bond limit may vary based on the discretion of the Commission which will affect bond rates. The bond limit is never more than $25,000. Jet does have to factor in the personal credit of the security dealer.
The Securities Dealer Bond is from Jet is a promise to the Commission that you, the dealer, will not act fraudulently. If a dealer were to commit fraud and not remedy any damage inflicted on a client, Jet would provide proper compensation to the unlawfully damaged party up to the bond limit.
The Securities Dealer Bond is required by any business or person acting as a licensed securities dealer in the state, as stated by ARS 44-1943 that is not registered under the securities exchange act of 1934.
Jet’s online application will ask for simple business information plus a social security number for a soft credit check. Fear not, as the credit check will not hurt your credit score. You will receive your quote online immediately and the Securities Dealer Bond can be purchased at that time.
Once purchased, Jet will provide you a downloadable copy of the bond.
Yes, Jet can file the bond for you directly to the Commission Securities Division. You will receive a copy of the bond for your own records.
Should you want to file the bond yourself, please make that clear to us during checkout and we will get you the original form. When mailing in the bond filing it would go to the following location:
Arizona Corporate Commission
1300 West Washington Street
Phoenix, AZ, 85007
If you need to cancel your bond, notify Jet and we will process cancellation with the Commission. After the cancellation notice is received by the Commission, the bond will remain active for 90 days during a grace period with the Commission. If you have any unearned premium from your cancelled bond following that 90-day period, we refund that amount to you.
If you are a monthly payment subscriber, Jet will halt payments as soon as that 90-day cancellation period has passed.
If you are on an annual payment plan, Jet will email and mail you in advance regarding your bond renewal as a reminder. For renewal, Jet only requires payment. Following payment, a copy of the updated bond and receipt of purchase will be sent to you.
If you participate in Jet’s monthly payment plan, simply provide payment and the bond will stay active.
To avoid a bond claim, securities dealers should be familiar with the limitations of their job duties and what operations are considered legal versus illegal, all which are listed on Arizona Statutes ARS 44-1991. Jet has summarized the foremost points below:
|Violations and means for bond claim include||Lawful duties include|
|Filing misleading information with the Arizona Corporate Commission||Maintaining an active surety bond|
|Performing a fake audit on financial statements||Registering with FINRA and the SEC before applying for a license|
|Misrepresenting a sale of securities||Admitting liability for all money covered by payment instruments that it sells or issues|
|Collecting unlawful commission from a referral of a client||Paying required fees: annual registration, filing, and application|
|Providing false information on a registration form||Fulfilling special filing requirements for certain exempt or federal covered securities|
|Omitting material facts from a proof of sale statement||Requiring an order of nondisclosure for testimony of records|
Any market buyer or seller who endures financial hardship as a direct result of a fraudulent securities dealer has the option to file a complaint through the Commission. The Commission will investigate if the claim is valid and if needed, move forward with disciplinary action against the violating dealer.
Should a securities dealer cause financial injury by violating any of the following requirements stated above, the recipient can place a claim on the surety bond.
If you receive a claim on your bond, notify Jet immediately. Send all information pertaining to your case and we will begin our own investigation.
Should the claim be validated, Jet will fulfill our duty as a surety carrier to provide payment up to the maximum bond limit to those affected. That being said, the securities dealer remains liable for their fraudulent actions and is required to refund the surety company for paid out claims. The bond, unlike is insurance, is a guarantee of payment and does not transfer liability to the carrier. Jet will still defend you, however, as we are incentivized to weed out fraudulent claims against security dealers.