Minnesota statute (80A.41 Section 102) defines an “Investment adviser” as a “person that, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or the advisability of investing in, purchasing, or selling securities or that, for compensation and as a part of a regular business, issues or promulgates analyses or reports concerning securities. The term includes a financial planner or other person that, as an integral component of other financially related services, provides investment advice to others for compensation as part of a business or that holds itself out as providing investment advice to others for compensation. Every investment adviser registered or required to be registered under the Minnesota Securities Act, Minnesota Statutes, chapter 80A, having custody of or discretionary authority over client funds or securities must post with the administrator of the Department of Commerce, a Minnesota investment adviser surety bond in the maximum amount authorized by Minnesota Statutes, section 80A.66, subsection (e). A surety bond required by law must be issued by a surety company qualified to do business in the state. The Minnesota investment adviser bond must be in the form approved by the administrator and shall be subject to the claims of all clients of such investment adviser regardless of the client’s state of residence. The rule adopted pursuant to the Minnesota securities act may require a broker-dealer or investment adviser that has custody of or discretionary authority over funds or securities of a customer to post this bond in an amount of at least $25,000, but not to exceed $100,000. Generally a bond is not be required of a broker-dealer registered under with the state whose net capital exceeds, or of an investment adviser registered under this chapter whose minimum financial requirements exceed, the amounts required by rule or order promulgated by the Administrator.
National surety leader, Surety One, Inc. specializes in underwriting surety and fidelity bonds for the financial services sector. For more information or application materials for a Minnesota Investment Adviser surety bond visit us at SuretyOne.com, call (800) 373-2804, or email us at Underwriting@SuretyOne.com.
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