A Michigan investment adviser bond is required from professionals that offer advice on securities investments in the state and that exercise control or authority over those securities. The regulating statute is the Michigan Uniform Securities Act (MUSA), 2008 PA 551. Per Licensing and Regulatory Affairs (CSCL), "The Securities & Audit Division oversees the registration of individuals and entities that provide investment-related advice to Michigan residents, the registration and exemption of products, and investigates complaints related to securities. Securities sold in Michigan must be either registered, federally covered, or exempt from registration, under the MUSA."
Pursuant to 451.2411 (5), "A a broker-dealer and investment adviser that has custody of or discretionary authority over funds or securities of a client must file a Michigan investment adviser surety bond in an amount established by the administrator by rule or order." The surety obligation is a guarantee that the licensee will, "perform and discharge all obligations imposed on the licensee as an investment adviser registered under the Securities Act of Michigan and account for all monies and securities coming into its hands for the use and benefit of investors." The surety bond must permit an action by a person to enforce any liability on the same. All persons or business entities that offer or sell securities or advise for a fee in the State of Michigan on what securities should be bought or sold must be registered and file the investment adviser bond as follows:
Michigan Department of Licensing and Regulatory Affairs
Corporations, Securities & Commercial Licensing Bureau
Securities and Audit Division
P.O. Box 30018, Lansing, MI 48909
Overnight Address: 2407 N. Grand River Ave, Lansing, MI 48906
Michigan surety bond leader, Surety One, Inc., specializes in underwriting surety and fidelity bonds for the financial services sector. For more information or application materials for a Michigan investment adviser surety bond call (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for a live chat with an underwriter.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.