Series 24: Fidelity Bonds

Taken from our Series 24 Online Guide

Fidelity Bonds

A fidelity bond is a type of business insurance that protects the business from employees’ dishonest acts. In other words, if a broker-dealer employee acts fraudulently and costs the firm several million dollars by doing so, a fidelity bond would cover those costs to protect the firm’s financial integrity. An employee is defined by this rule as anyone associated with the firm except for sole prop

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