South Carolina Investment Adviser Bond Overview
- Purpose: To protect clients from financial harm if an investment advisor breaks regulations
- Who Needs It: Investment professionals with discretionary authority but not custody of client funds or securities
- Regulating Body: The South Carolina Office of the Attorney General, Securities Division
- Bond Amount: $35,000
- Minimum Price: $525; credit-based
What Is a South Carolina Investment Adviser or Broker-Dealer Bond?
South Carolina investment adviser bonds ensure that investment advisers comply with the South Carolina Uniform Securities Act. This bond protects the consumers from financial loss if the adviser fails to adhere to the surety contract terms.
Who Needs a Surety Bond?
Some investment advisers with discretionary authority, but not custody of client funds or securities, must file a form of $35,000 financial security if they don’t meet the net worth requirements.
- Investment Adviser: Provides direct or indirect advice about investing in purchasing or selling securities or creates reports or analyses about securities (includes financial planners and many financial service providers)
- Broker-Dealer: Engages in effecting securities transactions for the account of others or for their own account
Verify your bond requirement with the Securities Commissioner.
How Much Do Investment Adviser Bonds Cost in South Carolina?
The $35,000 investment adviser bond starts at $525 for a full year of coverage. You can also select a multi-year term to save 25%.
Exact rates vary between 1.5% and 10% based on financial risk factors like credit score. Apply for your personalized quote now.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a South Carolina Investment Adviser Bond Work?
This type of surety bond creates a legally-binding contract between three parties.
- Principal: The investment adviser or broker-dealer filing the bond
- Obligee: The South Carolina Office of the Attorney General, Securities Division
- Surety: The surety provider issuing the bond
As the bonded principal, you promise to uphold the bond terms and state laws. If not, harmed clients or the state can file claims to recoup losses. The surety will validate and pay claims then seek repayment from you.
How Do I Get My Investment Adviser/Broker-Dealer Bond?
SuretyBonds.com provides the fastest and easiest way to get an investment adviser surety 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: Receive your official bond form in the mail
Upon receipt, file the official bond with the Securities Division as instructed.
How Fast Can I Get My Bond?
We issue most quotes same-day. At checkout, you can select two-day, next-day or overnight shipping. This costs $20, $30, or $40, respectively.
How Do I File My Bond?
You’ll file your original bond form when you submit your SC investment adviser registration application. See more details in the licensing section below.
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.
Do I Need to Renew My Bond?
Investment adviser/broker-dealer bonds are in effect for one year and must be renewed annually. The surety has the right to cancel the bond if it gives 30 days’ written notice to the principal and obligee.
To renew your investment adviser bond, simply pay your renewal invoice when prompted. We’ll start contacting you 90 days before the expiration date with helpful reminders.
How to Become a Registered Investment Adviser in South Carolina
You’ll need to submit these materials with your investment adviser application:
- A copy of your client advisory contract forms
- An unaudited balance sheet and income statement for the firm dated within 45 days of the submission, attested to by executing and filing the Verification Form
- Original surety bond form, if required
- A list of investment adviser representatives and their CRD number
You can email everything to [email protected] mail it to the following address:
The Honorable Alan Wilson
P.O. Box 11549
Columbia, S.C. 29211
