What Is a Surety Bond for RIAs?

Not every state requires a surety bond, and among those that do, requirements often depend on factors like whether the firm has custody or discretionary authority over client assets — firms with greater control over client funds are more likely to face a bond requirement, and required amounts can scale accordingly. The bond is typically obtained through an insurance or surety company, and firms need to provide proof of the bond as part of their state registration application in states where it’s required.

Firms should check their specific state’s current requirements directly, since bond requirements, thresholds, and amounts are set at the state level and aren’t uniform nationally.