Click to Home
Go To Search

News and Press Releases

Posted on: May 23, 2012

Commissioner Jack Issues a Special Order Waiving Surety Bond Requirements

For Immediate Release: May 21, 2012


Commissioner Jack Issues a Special Order Waiving Surety Bond Requirements

Topeka, Kan- Commissioner Jack announced that he has issued a Special Order – Waiver Surety Bond requirements for Investment Advisers.

The current version of K.A.R. 81-14-9(e) requires every investment adviser registered or required to be registered under the Kansas Uniform Securities Act (KUSA) that has custody or discretionary authority over client funds or securities to be bonded for at least $35,000. Staff for the Office of the Kansas Securities Commissioner have recommended that the surety bond requirements of K.A.R. 81-14-9(e) are no longer necessary, and therefore, will not be required as of May 21, 2012.

"It is critical that we effectively balance investor protection with our rules and regulations for registrants that are not unnecessarily extensive or costly. When regulations become unreasonable they can restrict job growth. By eliminating this bonding requirement we are recognizing investor protection is more economically accomplished through errors & omission insurance which typically provides more coverage at a lower cost than traditional surety bonds. By removing this barrier to entry into the marketplace our goal is to continue to establish a regulatory environment where our brightest citizens will seek to join the financial services industry," said Commissioner Jack.

Investment Advisers who have questions on the new waiver of surety bond requirements should contact the Office of the Kansas Securities Commissioner for further information and guidance at (785) 296-3307.
###

The Office of the Kansas Securities Commissioner regulates securities offerings and investment professionals in the securities industry, provides investor education, investigates illegal securities activities, and prosecutes securities-related crimes. For more information about the Office of the Kansas Securities Commissioner, go to www.ksc.ks.gov or visit our Facebook page.

View full Special Order
Facebook Twitter Google Plus Email

Other News in News and Press Releases

Scholarship Winners Announced!

Posted on: April 20, 2017

Regulation A, Tier 2 Offerings

Posted on: June 10, 2016

Essay Scholarship Winners Announced!

Posted on: April 25, 2016

Wichita Man Sentenced for Securities Fraud

Posted on: November 24, 2015

Lawrence Man Sentenced for Securities Fraud

Posted on: September 12, 2014

2013 Video Contest Winners Announced!

Posted on: April 30, 2013
America Saves Week!

Kansas Saves Week (America Saves Week)

Posted on: February 25, 2013

KSC Newsletter

Posted on: March 15, 2012