Although largely regulated by FINRA (Financial Industry Regulatory Authority) broker dealers and financial advisers practicing in the State of Tennessee must also register locally and provide a Tennessee securities dealer bond. The state defines a broker dealer as any person engaged in the business of effecting transactions in securities for the account of others, or any person engaged in the business of buying or selling securities issued by one or more other persons for such persons own account as part of a regular business rather than in connection with such person’s investment activities. This license class must provide a $10,000 Tennessee broker dealer bond if the broker-dealer’s net capital is below $100,000 An investment adviser is defined as any person who for compensation engages in the business of advising others as to the value of securities or as to the advisability of investing in, buying or selling securities or for compensation prepares analyses or reports concerning securities. This license class must provide a Tennessee investment adviser bond only if the adviser has not complied with the FEDERAL net capital and bonding requirements. The bond form available from the Securities Division of the Department of Insurance is the same for broker-dealers, issuer dealers, and Tennessee investment advisers and guarantees that the registrant will fully account for and pay all moneys and securities of another to the person entitled thereto, which may come into the possession of the registrant and received by him in his registered capacity, and that he will promptly and faithfully pay any judgment rendered against him by a court of competent jurisdiction for any fraud or misrepresentation in securities matter under its registration. Surety One, Inc., is the leader in surety in the financial services sector. We offer broker dealer surety bonds and investment adviser bonds in every state that requires them. Visit us at SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for an Tennessee broker dealer bond application or for information about any surety bond need, anywhere!
