New Jersey — Investment Advisor Bond
For a New Jersey adviser with custody of client funds or securities, the capital rule permits a $35,000 surety bond instead of $35,000 minimum capital, subject to its exceptions. Establish the firm's custody status and accepted filing requirements before applying.
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- Recorded state
- New Jersey
- Bond type
- Broker-Dealer / Investment Adviser Bond
- Category
- Financial services
What this bond does
The Bureau of Securities requires the Uniform Surety Bond, Form U-SB, for the capital-rule bond. Its investment-adviser designation secures registration and compliance with applicable securities statutes, orders and rules. It should not be completed in the broker-dealer capacity merely because both appear on the uniform form.
- Who needs it
- An advisory firm using the bond route for a New Jersey custody-related financial requirement. Qualified fee-deduction or pooled-vehicle custody arrangements and firms based elsewhere need separate applicability checks.
- Who it protects
- Form U-SB acknowledges an obligation to the State for people with claims under its conditions. New Jersey's bond rule specifically requires third-party suit rights for damage from misuse or misapplication of client funds or securities. The stated aggregate is shared across claims, not a separate limit for each client.
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
- New Jersey Bureau of Securities: uniform forms (opens in a new tab)Checked October 26, 2026
- New Jersey 13:47A-2.2: capital requirements (opens in a new tab)Checked October 26, 2026
- New Jersey 13:47A-2.3: bonds (opens in a new tab)Checked October 26, 2026
- New Jersey Bureau: adviser registration instructions (opens in a new tab)Checked October 26, 2026
Have these ready
- Identify the legal adviser and its principal place of business.
- Document custody, discretion and any safeguard-based exception.
- Confirm the custody capital-or-bond route with the Bureau.
- Match New Jersey, Bureau, adviser capacity, sum and dates on U-SB.
- Complete accepted notice and action entries, acknowledgment and any applicable power of attorney.
Questions about this bond
Can every adviser use a $35,000 bond instead of capital?
The $35,000 alternative belongs to the custody provision, with specific safeguards-based exceptions. Discretion without custody has its own $10,000 net-worth requirement. Confirm which provision applies, including any applicable home-state treatment, before selecting a bond.
Does the two-year term end all claim rights?
The rule preserves claims for losses sustained while coverage was in force for two years from when the injured party knew or should have known of the cause of action. It also specifies 90 days' written termination notice to the Bureau Chief. Ending coverage is not the same as extinguishing earlier liabilities.
What follows Purchase Now?
Propeller's New Jersey investment-advisor application opens in a new tab. Match the firm, custody requirement, State obligation, adviser capacity, sum and dates. Review and execute U-SB with the appropriate acknowledgment and any required power of attorney, then file as the Bureau directs. Purchase does not complete registration.