Colorado — Investment Adviser Bond
Colorado's adviser bond addresses a shortfall in required liquid net worth, not a fixed bond sum for every firm. Where Rule 51-4.13(IA) requires bonding, the amount is the deficiency rounded up to the nearest $5,000. The rule calls for Form U-SB to be filed with the Securities Commissioner.
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- Recorded state
- Colorado
- Bond type
- Broker-Dealer / Investment Adviser Bond
- Category
- Financial services
What this bond does
The prescribed uniform undertaking secures the registered adviser's compliance with applicable securities statutes and the orders, rules and regulations issued under them. It acknowledges an obligation to the State for the benefit of persons with a claim under its conditions.
- Who needs it
- An investment advisory firm matching a Colorado financial-security request. Describe discretion, custody, liquid net worth and the principal place of business so the Division can determine the applicable requirement and exemptions.
- Who it protects
- Form U-SB allows a qualifying claimant to sue the principal or surety and caps total liability at the stated aggregate sum. It is not a promise of investment gains or an automatic approval of the firm's license. Name Colorado, the Division and the adviser's actual registered capacity in the accepted file.
Your bond option
This is the option on record for this bond.
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The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.
Sources
- Colorado Rule 51-4.13(IA): net-worth requirements (opens in a new tab)Checked October 26, 2026
- NASAA Form U-SB: uniform surety bond (opens in a new tab)Checked October 26, 2026
- Colorado Division of Securities: advisers and representatives (opens in a new tab)Checked October 26, 2026
Have these ready
- Identify the legal adviser firm, registration and principal place of business.
- Document liquid net worth, discretion and custody for the applicable rule calculation.
- Confirm the deficiency-based sum and any exemption with the Division.
- Complete the accepted Form U-SB's Colorado, agency, role, statute, amount and date entries.
- Arrange entity acknowledgment, surety authority and filing with the Commissioner separately from IARD licensing.
Questions about this bond
Is my bond automatically $10,000 or $35,000?
Those figures are minimum liquid-net-worth requirements for the specified activities. When bonding applies, the rule uses the deficiency rounded up to the nearest $5,000. Confirm the actual calculation rather than selecting a financial threshold as the bond sum.
What if the firm is principally based in another state?
The rule provides an exemption for a firm with its principal place of business elsewhere that is properly licensed there and satisfies that state's bonding requirement. An address alone does not establish all conditions. Have the Division confirm the firm's file.
Does the published form specify a standard cancellation period?
The cancellation-notice number and claim-period number are blank in the posted Form U-SB. Use the Division's accepted current directions. The form preserves earlier acts or omissions; do not infer that cancellation erases prior liability.
How do I use Purchase Now?
It opens Propeller's Colorado investment-adviser application in a new tab. Match the firm, Colorado obligation, Form U-SB requirement, confirmed deficiency-based sum and dates. Review and execute the issued undertaking, then file it with the Commissioner as directed; the provider application is separate from IARD licensing.