Haw. Code R. § 16-39-434 - Bonding requirements for certain investment advisers
(a) Any investment adviser bond required
under this chapter and chapter 485A, HRS, shall be issued by a surety company
qualified to do business in this State with the State as obligee, and shall be
subject to the claims of all clients of such investment adviser regardless of
the client's state of residence.
(1) Every
investment adviser registered or required to be registered under this chapter
and chapter 485A, HRS, having custody of or discretionary authority over client
funds or securities shall be bonded in the amount of $50,000.
(2) Every investment adviser registered or
required to be registered under this chapter and chapter 485A, HRS, who has
custody of or discretionary authority over client funds or securities and who
does not meet the minimum net worth requirements prescribed in section
16-39-433 shall be bonded in the
amount of the net worth deficiency rounded up to the nearest $5,000.
(b) For purposes of this section,
"custody" shall be as defined in section
16-39-436.
(c) An investment adviser that has its
principal place of business in a state other than this State shall be exempt
from the requirements of subsection (a), provided that the investment adviser
is registered as an investment adviser in the state where the investment
adviser has its principal place of business and is in compliance with such
state's bonding requirements.
Notes
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