An investment advisor in the State of North Carolina that maintains custody of or discretionary authority over client funds or securities must file with the Secretary of State's Securities Division an investment advisor's surety bond. Registration as an Investment Adviser is contemplated under Chapter 78C of the North Carolina General Statutes however the bond requirement was promulgated by the Secretary as an administrative code.
Pursuant to 18 NCAC 06A .1705, the advisor's bond must be written in an amount no less than thirty-five thousand dollars ($35,000.00) by a bonding company qualified to do business in North Carolina. The surety bond must be filed with the Administrator on Form NCIAB (North Carolina Securities Division Investment Adviser's Bond) or on a form whose terms are substantially equivalent to the terms of Form CDCS-1A and which is approved as the substantial equivalent. The bond is cancelable however it carries a significant claims tail. Any person who sustains an injury covered by the bond may bring an action in his or her own name upon the same for the recovery of those damages sustained because of a breach, however NO action may be brought after the expiration of three (3) years after the rendering of investment advice in violation of the statute. Questions may be directed to SecDiv@SOSNC.gov. The North Carolina investment advisor's bond and registration paperwork must be sent to:
North Carolina Secretary of State
P.O. Box 29622
Raleigh, NC 27626
North Carolina surety bond leader, Surety One, Inc. specializes in the bonding needs financial institutions and investment professionals . We offer surety bonds and fidelity bonds to financial advisors, broker/dealers, and securities operators 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. Call (800) 373-2804, email us at Underwriting@SuretyOne.comm or click here for a live chat with an underwriter about a North Carolina financial advisor's surety bond application or any other insurance need.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.