North Carolina Investment Adviser Bond

North Carolina Investment Adviser Bond

North Carolina requires investment advisers and investment adviser representatives that wish to make investment recommendations or conduct security analysis for clients to first be registered with the Secretary of State. Under the certification, a $10,000, $35,000, or $50,000 Investment Adviser Bond must be obtained. The Investment Adviser Bond acts as a fiscal guarantee for clients that have been financially damaged by the investment adviser due to registration violations or a breach of contract.

Investment adviser representatives with discretionary authority and a minimum client net worth of $10,000 are required to purchase a $10,000 Investment Adviser Bond. Investment advisers who have custody of clients’ funds or securities that are at a minimum net worth of $35,000 are required to purchase a $35,000 Investment Adviser Bond. Investment advisers who have custody of clients’ funds or securities that are at a minimum net worth of $50,000 need a $50,000 Investment Adviser Bond. Check with the Securities Division to see which bond limit applies to your investment operation.

PURCHASE INVESTMENT ADVISER BOND

Jet operates as a direct surety company; we cut out middleman agents and brokers so we can offer you affordable prices with a simple online bond application.

What Is the Price for the Investment Adviser Bond?

At Jet, bond rates are never influenced by broker or commission fees. Our prices are based on a percentage of the bond limit and the personal credit of the investment adviser. At Jet, we offer annual or monthly payment options. Below is an example of Jet’s preferred pricing tier for each of the bond limits.

Bond LimitMonthlyAnnual
$10,000$10$100
$35,000$35$350
$50,000$50$500
North Carolina Investment Adviser Bond Pricing

An advantage of choosing the monthly payment option includes the ability to keep your bond continuously active for your yearly registration renewal. Other surety companies don't offer monthly payments, but at Jet we strive to have payment options that work for everyone!

How Is the Investment Adviser Bond Filed in North Carolina?

Jet files the Investment Adviser Bond for you! Other surety companies won't file the bond for you and will proceed to charge a shipping fee in order to mail the bond to you. Not at Jet! We file the original signed and sealed bond to the Secretary of State’s Securities Division and send you a copy for your records free of charge.

If you are applying for an initial or renewal registration certificate, review the registration requirements and additional paperwork mandates. Jet gives you the option to have the original bond sent to you directly if you wish to file the bond with other paperwork. The bond should be mailed to the address below.

NC Department of the Secretary of State
Securities Division
PO Box 29622
Raleigh, NC 27626-0622

What Is the Purpose of the Investment Adviser Bond?

The North Carolina Secretary of State’s Securities Division is responsible for investor education, maintaining an equitable securities marketplace, and handling investment adviser registration. Under the registration, the Division created rules and regulations for advisers to abide by so the public will be protected against investment fraud, unethical adviser practices, and breaches of contract. One regulation in place is the Investment Adviser Bond which protects clients by making sure that if any kind of fraud affects the purchase, sale, or investment of securities for a client, that person will be reimbursed for the amount of damages caused by the adviser.

How Does an Investment Adviser Avoid Bond Claims?

In order to maintain an investment adviser certification of registration, all advisers must follow the regulations found in North Carolina General Statutes Chapter 78C, 18 NCAC 06A .1702, and 18 NCAC 06A .1801. These rules are extensive and should be reviewed thoroughly. Failure to comply could result in suspension, revocation, or refusal to renew a registration, large fines, or civil penalties brought on by the Division. Past or present clients are also entitled to bring civil action against the adviser which may lead to a bond claim. Adviser actions that can lead to a bond claim are as follows:

Complaints can be submitted to the Division for a review and investigation. It is in the best interest of the adviser to work with the Division or directly with the client on resolving the complaint before civil action and a bond claim is pursued. If the adviser refuses or is unable to resolve the complaint, the client may be advised by the Division to take civil action against the adviser. 

In cases of the civil courts validating a claim, the bond will pay for any financial damages brought on by the adviser to the client as well as a reasonable attorney's fee fixed by the court.

What Happens If a Claim Is Filed on the Investment Adviser Bond?

Immediately contact the Jet team upon receipt of the court ordered claim payout. Jet will proceed with a review of the claim details and the court's investigation. Jet does its best to protect our bondholders from faulty claims, but there is little we can do when the claim has been validated by the state court system. 

When a claim is legitimate, Jet will make payment up to the $10,000, $35,000, or $50,000 bond limit. The investment adviser is ultimately responsible for their actions and must reimburse Jet for the paid out claim. Failure to do so will result in difficulties obtaining future surety bonds, including the North Carolina Investment Adviser Bond. It is important to note that failure to register with the Secretary of State, and failing to acquire the Investment Adviser Bond, is a Class 1 Misdemeanor offense.

How Does the Application Process Work With Jet?

The Jet team takes pride in our online bond application process. The application is simple and asks for basic information such as the investment advisers name and social security number. A soft credit check is completed to get a competitive approved rate in a matter of minutes. Once payment has been made, Jet will immediately file the bond for you and send you a copy for your records. 

PURCHASE INVESTMENT ADVISER BOND

Does the Investment Adviser Bond Expire in North Carolina?

Not with Jet! Our monthly payment option erases the need for a bond renewal. Plus, the bond will remain active for you to have on hand when your annual registration renewal occurs. 

If you choose a one-, two-, or three-year payment option for this bond, Jet will send a renewal invoice prior to the bond’s expiration. We do not require any renewal fees or extra paperwork, the payment is all this required.

Can the Investment Adviser Bond Be Cancelled?

Yes, you can cancel the bond at any time with Jet! Just send us a cancellation request (an email) and we will take care of filing the bond cancellation notice with the Secretary of State. Liability will be released within 30-days of the official cancellation filing date.

If the monthly payment option was chosen for this bond, Jet will need to charge for that 30-day period as the bond is still technically active. If the annual payment option was chosen, the Jet team will review your bond to see if there is any premium available for reimbursement.

North Carolina Investment Adviser Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: