Maryland Investment Adviser Bond Guide
In Maryland, all investment advisers who have custody of client funds must file a surety bond.
Bond Overview
- Purpose: To ensure investment advisers uphold state regulations and client contracts
- Who Needs It: All investment advisers handling client funds in Maryland
- Regulating Body: The Maryland Office of the Attorney General, Securities Division
- Required Coverage: $10,000
- Premium Rate: Credit-based, typically $100–$150
Keep scrolling to learn more about the bonding process.
What Is a Maryland Investment Adviser Bond?
A Maryland investment adviser bond ensures that advisers handle client funds ethically and follow state regulations.
The Maryland Attorney General’s Securities Division requires this type of license and permit bond to register with the state.
How Much Do Investment Adviser Bonds Cost in Maryland?
Maryland investment adviser bond premiums start at 1% of the bond amount based on credit score. Most applicants typically pay $100–$150 for the $10,000 required coverage.
Apply below for your free personalized quote. You may also be eligible for a multi-year term to save 25%.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Investment Adviser Bond Work?
A Maryland investment adviser bond is a legal contract between three parties:
- Principal: The investment adviser purchasing the bond
- Obligee: The Maryland Office of the Attorney General, Securities Division requiring the bond
- Surety: The provider issuing the bond
You, as the principal, promise to uphold the provisions of MD Code, Corporations and Associations § 11-4.
If you break these terms, harmed parties can file claims. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.
Who Needs an Investment Adviser Bond?
All financial planners and firms must file a $10,000 surety bond if they meet either of the following conditions:
- Have custody of client funds
- Collect $500 or more in fees at least six months in advance
Alternatively, you can maintain a minimum net capital of $20,000 or minimum tangible net assets of $35,000. However, a surety bond is typically the most accessible option.
How Do I Get an Investment Adviser Bond in Maryland?
SuretyBonds.com provides the fastest and easiest way to get an investment adviser bond. Follow these simple steps:
- Apply Online: Enter your information to receive a personalized quote
- Pay Invoice: Complete your purchase online or over the phone
- Receive Bond: Select your FedEx shipping option to receive your official bond form
Upon receipt, sign and file the official bond documentation with the Division.
How Fast Can I Get My Bond?
If you’re in a rush, SuretyBonds.com offers overnight FedEx delivery. Purchase now to receive your original bond form the next day.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get bonded with bad credit. However, poor credit will typically increase your premium rate.
Apply for a free quote or visit our Surety Bond Cost FAQ page to see how credit may impact your cost.
How Do I Renew My Investment Adviser Bond?
Maryland investment adviser bonds expire annually. When you work with SuretyBonds.com, we’ll send you reminders before your bond expires.
To extend your bond term, just pay the renewal invoice — we’ll do the rest!
How to Become an Investment Adviser in Maryland
All Maryland investment advisers must register with the Attorney General’s Securities Division.
Submit the following materials via the Investment Adviser Registration Depository (IARD):
- Form ADV
- Copy of each client contract
- Copy of most recent balance sheet (if you have custody of client funds)
- Copy of your surety bond form (if you have custody of client funds)
- Exam score report (Series 65 or Series 7 and Series 66)
- Fee payment: $300 for firms, $50 for investment adviser representatives
The Division will review your application within 30 days. You will receive a deficiency letter if any documents are missing.
If necessary, file Form ADV-W through the IARD to withdraw your federal registration with the Securities and Exchange Commission (SEC).
How to Renew Your Registration
Maryland investment adviser registrations expire annually. Renew through the IARD and pay all fees by mid-December.
All investment adviser representatives must meet the following continuing education requirements annually:
- 6 credits of ethical and regulatory obligations (minimum 3 hours of ethics)
- 6 credits of financial products, investment features and advisory practices
All courses must be approved by the North American Securities Administrators Association (NASAA).
