02-032 C.M.R. ch. 515, § 13 - Bonding requirements for licensed investment advisers
1.
Licensed Investment Advisers not
Meeting Net Worth Standard. Every investment adviser licensed under the
Act having custody of or discretionary authority over client funds or
securities that does not meet the minimum net worth standard in Section
12, Sub-sections (1) and (2) shall be
bonded in the amount of the net worth deficiency rounded up to the nearest
$5,000.
2.
Requirements of
Bond. Any bond required by this section shall be:
A. Issued by a company qualified to do
business in this state;
B. In the
form determined by the Administrator; and
C. Subject to the claims of all clients of
the investment adviser regardless of the client's state of residence.
3.
Bonding Requirements of
Investment Advisers with Principal Place of Business Out of State. An
investment adviser that has its principal place of business in a state other
than Maine shall be exempt from the requirements of this section, provided that
the investment adviser is licensed as an investment adviser in such state and
is in compliance with such state's requirements relating to bonding.
Notes
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