Iowa Admin. Code r. 191-50.41 - Bonding requirements for investment advisers
(1) Every investment adviser registered or
required to be registered under the Act :
a.
Having custody of or discretionary authority over client funds or securities
shall be bonded in an amount determined by the administrator based upon the
number of clients and the total assets under management of the investment
adviser; and
b. Having custody of
or discretionary authority over client funds or securities when the investment
adviser does not meet the minimum net worth standard provisions of subrules
50.40(1) and 50.40(2) must be bonded in the amount of the net worth deficiency
rounded up to the nearest $5,000.
(2) A bond required by this rule shall be
issued by a company qualified to do business in this state in the form
determined by the administrator and shall be subject to the claims of clients
of the investment adviser regardless of the client's state of
residence.
(3) An investment
adviser that has a principal place of business in a state other than Iowa is
exempt from this rule provided that the investment adviser is registered as an
investment adviser in the state in which the investment adviser has its
principal place of business and is in compliance with that state's laws
regarding bonding requirements.
(4)
For purposes of this rule, "custody" means the same as defined in paragraph
50.39(4)"b. "
This rule is intended to implement Iowa Code section 502.411(5).
Notes
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