Mich. Admin. Code R. 451.4.14 - Bonding requirement for certain investment advisers
Rule 4.14.
(1)
For purposes of this rule, "custody" is defined in R 451.4.13(1)(a) and
(b).
(2) Any bond required by this
rule must 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 all
clients of such investment adviser regardless of the clients state of
residence. Both of the following apply:
(a)
Every investment adviser registered or required to be registered under the act
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.
(b) Every investment
adviser registered or required to be registered under the act who has custody
or discretion of client funds or securities who does not meet the minimum net
worth standard in R 451.4.17 shall be bonded in the amount of the net worth
deficiency rounded up to the nearest $5,000.00.
(3) An investment adviser that has its
principal place of business in a state other than this state is exempt from the
requirements of subrule (2)(a) of this rule, provided that the investment
adviser is registered or licensed as an investment adviser in the state where
it has its principal place of business and is in compliance with such states
requirements relating to bonding.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.