Series 26: Fidelity Bonds

Taken from our Series 26 Online Guide

Fidelity Bonds

A fidelity bond is a type of business insurance that protects the business from the dishonest acts of its employees. 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. For the purpose of fidelity bonding rules, an employee is defined as anyone associated with th

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