Delaware Investment Advisor & Broker-Dealer Bonds

Investment advisors must post a surety bond for the Department of Justice Investor Protection Unit as part of the licensing requirement. The bond ensures professional and ethical conduct related to the sensitive financial job functions of handling client securities and funds, providing investment advice, financial planning, and securities analysis. The surety bond protects customers against financial losses in the event that the advisor misuses or misapplies funds, violates fiduciary duties or license regulations.

The requirement is pursuant to the Delaware Securities Act and requires a bond amount of $35,000 for most advisors per Rules 704 and 705, but a bond of no less than $100,000 for Intrastate Broker-Dealers per Rule 605.