Investment Adviser Bond
The Department of Consumer and Business Services requires a $10,000 Investment Adviser Bond to be filed by state investment advisers for their licensing. The bond acts as a guarantee that customers will be protected from damages by investment advisers, who must comply with the Oregon Securities Law.
Choosing Jet for your Investment Adviser Bond will allow you to save time through our quick, online application and save money with Jet’s rates.
What Is the Lowest Price for the Investment Adviser Bond?
Jet offers the Investment Adviser Bond for as low as $75 annually or $8 monthly. At Jet, we don’t use brokers or agents as a middleman to find an approved rate for you. Instead, we look to streamline the bonding process: when you buy your bond from Jet, you are buying directly from the surety carrier. The rates offered are never influenced by broker fees or commissions.
| Term | Cost |
|---|---|
| Monthly | $8 |
| 1 Year | $75 |
| 2 Years | $131 |
| 3 Years | $188 |
Investment Adviser Bonds will range in how much they cost, based on the adviser’s personal credit. Above is an example of preferred pricing for investment advisers.
Our underwriting process takes only seconds and is available for purchase once the application is approved.
Can Jet File the Investment Adviser Bond For Me?
Yes! Once your Investment Adviser Bond has been purchased, our team will complete the bond and file it with the DCBS. Other companies leave the burden of filing the bond to you; Jet is committed to simplifying the bonding process and submitting your bond directly to the Department.
New license applicants may need to submit the Investment Adviser Bond along with licensing documentation. If this applies to you, Jet can mail the bond to you. Once all paperwork has been completed, you can send it to:
Oregon Department of Consumer & Business Services
Division of Financial Regulation — Securities Division
P.O. Box 14480
Salem, OR 97309-0405
What Happens If I Need to Cancel My Investment Adviser Bond?
If you need to cancel your Investment Adviser Bond, Jet will process the cancellation right away! Our team will notify the DCBS to cancel the bond and provide you with a refund of the unearned premium. Monthly payments will stop as soon as we receive a cancellation request.
When the DCBS receives notice of cancellation, they hold the bond in effect for 30 days, so this additional time that the bond is in effect will affect the return premium or require a final monthly payment. Since the monthly payments keep the bond running, a late or missed payment may cause Jet to cancel the bond for nonpayment.
How Does a Principal Avoid Bond Claims?
The DCBS requires an Investment Adviser Bond to be filed as insurance that the adviser will follow the Oregon Securities Law, which is found in the Oregon Revised Statutes 59.005 – 59.505, 59.991, and 59.995. These sections regulate the behavior of investment advisers, from receiving a license to the actions that can cause the license to get revoked. Failure to comply with the Oregon Securities Law can not only result in cancellation of your license, but a claim can be filed against you.
As indicated in ORS 59.115 and 59.127, any person who has been wronged and has cause for a legal action against an adviser also has a right to file a claim against the bond. Causes for legal action or bond claims include engaging in deceit or defrauding the buyer or seller during a transaction. To prevent either claims or lawsuits, simply act honorably in all transactions and follow the provisions of the Oregon Securities Laws.
Usually, bond claims are a last resort by a customer seeking restitution for damages. Most customers will voice a complaint to the investment adviser before seeking a civil suit, which may lead to a bond claim as well as legal fees from the lawsuit. If you receive any complaints, it is best to address them early on before they become a costly problem.
What Happens If I Get a Claim On My Investment Adviser Bond?
If a claim is filed against your bond, Jet will defend you against false accusations. Our claims team will launch an investigation, taking evidence from both sides. Once the investigation begins, a verdict is usually reached within 45 days, unless more time is requested to reach a conclusion.
If a claim is proved valid, Jet will repay the claimant for damages up to $10,000. Once the payment is made, investment advisers are not off the hook. Since the investment adviser was responsible for the claim, they would still have to pay Jet back for the amount that was paid out in the claim. Failure to do so can lead to license complications.
What Is the Purpose of the Investment Adviser Bond?
The Investment Adviser Bond is required by the DCBS to protect customers against an adviser engaging in fraudulent activity. As one of the licensing requirements, an investment adviser cannot avoid obtaining a surety bond. The bond protects third parties, making sure that if any kind of fraud affects the purchase, sale, or investment of securities, any person that is deceived by the adviser will be reimbursed for the amount of damages caused by the adviser.
How Does the Application Process Work With Jet?
When applying with Jet, getting your Investment Adviser Bond couldn’t be simpler. The application takes only a few minutes and only requires general firm information. A personal credit check is required. Jet’s underwriting process is complete by the end of the online application, whereas other companies may take days to provide you with a quote. Jet offers a quote that is ready for purchase at the end of the application.
How To Renew the Investment Adviser Bond
Nearing the end of your bond term, Jet will send renewal notices to you that will take less than a minute to complete. To continue your bond, simply click the emailed link to submit your renewal instantly. For mailed notices, just mark the box, update your payment information, and send the notice back to Jet.
Monthly payments will keep your Investment Adviser Bond running as long as you need it, bypassing the renewal process altogether. Each installation continually pays for the upcoming month until you contact Jet to cancel the bond.
Does the Investment Adviser Bond Expire?
No, the Investment Adviser Bond will keep going until a cancellation request is made by the surety company (Jet). Although you don’t have to worry about the bond expiring, it is important to take care of renewals with Jet as your term comes to an end. Cancellation can be requested when the premium for the bond term has not been paid.
