10 Pa. Code § 303.051 - Surety bonds

(a) A surety bond shall be:

(1) Filed with the Department on Uniform Surety Bond Form (Form U-SB) or successor form.

(2) Subject to the claims of all clients regardless of the client's state of residence.

(3) Issued by a person licensed to issue surety bonds in this Commonwealth.

(b) An investment adviser that has its principal place of business in a state other than this Commonwealth shall comply with subsection (a) unless the investment adviser is:

(1) Registered as an investment adviser in that state.

(2) In compliance with the applicable net worth and bonding requirements of the state in which it maintains its principal place of business.

(c) An investment adviser that has its principal place of business in this Commonwealth and does not meet the minimum net worth requirements of § 303.042 (relating to investment adviser capital requirements) shall, if required by the Department, have and maintain a surety bond in the amount of the net worth deficiency rounded up to the nearest $5,000.

(d) A broker-dealer registered under the act but not registered as a broker or dealer under the Securities Exchange Act of 1934 (15 U.S.C.A. §§ 78a-78qq) shall, as required by the Department, be permitted to have and maintain for the registration period a surety bond in the amount of the net capital deficiency rounded up to the nearest $5,000.

(e) On request of the Department, a broker-dealer or investment adviser shall provide evidence of the existence of a surety bond.

Notes

10 Pa. Code § 303.051

The provisions of this § 303.051 amended December 17, 1982, effective 12/18/1982, 12 Pa.B. 4288; amended April 28, 1989, effective 4/29/1989, 19 Pa.B. 1945; amended September 1, 2000, effective 9/2/2000, 30 Pa.B. 4551; amended December 8, 2006, effective 12/9/2006, 36 Pa.B. 7456; transferred and renumbered from 64 Pa. Code § 303.051, December 14, 2012, effective 12/15/2012, 42 Pa.B. 7533; amended January 12, 2018, effective 1/13/2018, 48 Pa.B. 389.

The provisions of this § 303.051 issued under act of the Pennsylvania Securities Act of 1972 (70 P.S. §§ 1-101-1-704); amended under sections 203(d), (o) and (p), 205, 206, 301, 303, 504, 603(a) and 609 of the Pennsylvania Securities Act of 1972 (70 P.S. §§ 1-203(d), (o) and (p), 1-205, 1-206, 1-303, 1-504, 1-603(a) and 1-609); sections 4 and 9(b) of the Takeover Disclosure Law (70 P.S. §§ 74 and 79(b)); and section 202.C of the Department of Banking and Securities Code (71 P.S. § 733-202.C).

This section cited in 10 Pa. Code § 303.041 (relating to broker-dealer capital requirements).