A financial adviser in the state of Utah must be licensed and post an Utah investment adviser bond if he or she receives compensation for providing advice on securities and other investments. Licenses are issued by the Utah Department of Commerce, Division of Securities. The Division’s website provides direction on those activities that require a license including:
- Issuing reports or analysis on securities
- Making recommendations to buy or sell securities
- Managing a client’s securities portfolio
- Preparing financial plans that involve securities recommendations
- Managing an investment fund that allows for the investment in securities
A financial adviser must apply, file forms, including the Utah Financial Adviser Surety Bond, and make payments online through the Investment Adviser Registration Depository (IARD), an online database run by FINRA. The Investment Adviser will be assigned a six-digit IARD/CRD number. Once given access to the IARD, the applicant’s firm will also have access to the Central Registration Depository (CRD) where it will file Form U-4’s for its company representatives AND its designated official for compliance issues. To begin the licensing process you may access the IARD website at www.iard.com/accessIARD.asp or call the IARD Call Center at (240) 386-4848.
The adviser applicant must then file Form “ADV” through the IARD system. In filing the Form ADV the applicant specifies whether it is registering with the SEC or licensing with the state(s). The Form ADV also requires the adviser to provide detailed information about the proposed advisory business to both regulators and advisory clients.
The adviser applicant must submit a written notification to the Division that indicates whether the Investment Adviser will have either custody of or discretionary authority over client funds or securities The Utah Corporate Indemnity Bond of Investment Adviser amount is conditioned on the method of operation of the adviser. If the adviser has fund custody then the Utah investement adviser bond amount is $35,000 If the adviser has discretionary authority, then the surety bond amount is $10,000. The bond form is Utah “FORM 4-5BIA” regardless of the bond penalty.
Utah surety bond leader, Surety One, Inc. specializes in the bonding needs financial institutions and advisers . We offer surety bonds and fidelity bonds to financial advisers, broker/dealers, and securities professionals in all fifty states, Puerto Rico and U.S. Virgin Islands. Although applicant financial condition is a factor in bond underwriting, we have programs to fit EVERY credit condition. We also provide fidelity bonds (commercial crime policies) needed by this sector! Call (800) 373-2804, visit SuretyOne.com or email us at Underwriting@SuretyOne.com for a Utah investment adviser bond application or to discuss your particular needs.
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