Compilation of Rules and Regulations of the State of Georgia
Department 590 - RULES OF OFFICE OF SECRETARY OF STATE
Chapter 590-4 - COMMISSIONER OF SECURITIES
Subject 590-4-5 - BROKER-DEALERS AND AGENTS
Rule 590-4-5-.08 - Bonds

Universal Citation: GA Rules and Regs r 590-4-5-.08

Current through Rules and Regulations filed through March 20, 2024

(1) Except as otherwise provided for in this Rule, no applicant or broker-dealer that has custody of, or discretionary authority over, funds or securities of a customer or client shall be registered or renewed as a broker-dealer under Article 4 of the Act until the applicant files a bond satisfactory to the Commissioner in the amount of $25,000.00.

(2) The bonding requirements of this Rule shall not be applicable if broker-dealer:

(a) Has a minimum net worth of not less than $250,000.00; or

(b) Is registered under Section 15(b) of the Securities Exchange Act of 1934, is a member of FINRA or a national securities exchange registered with the SEC, and is a member of the Securities Investors Protection Corporation or is specifically excluded from membership pursuant to the Securities Investors Protection Act of 1970, as amended, 15 U.S.C.A. § 78aa a, et seq., because its business consists exclusively of one or more of the following categories:
1. The distribution of shares of registered open-end investment companies or unit investment trusts;

2. The sale of variable annuities;

3. The business of insurance; or

4. The business of rendering investment advisory services to one or more registered investment companies or insurance companies separate accounts.

(3) The Commissioner may, at any time, order a broker-dealer to provide additional proof of financial responsibility if the Commissioner determines that is necessary to adequately protect investors.

(4) The requirement for the filing of such bond by an applicant for registration or renewal as a broker-dealer or agent shall not be applicable if exempted or preempted by federal law.

O.C.G.A. Secs. 10-5-40, 10-5-70, 10-5-74.

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