District of Columbia Registered Investment Bond

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US-01646BG
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Description

An investment bond (sometimes called a debenture) issued by a corporation is an instrument promising to repay a loan to a corporation, which is may be secured by corporate assets. The relation between a bondholder and the corporation is that of a creditor-debtor. The principal on the debt is paid on the maturity date. The obligations evidenced by the bond may be secured or unsecured.


A registered bond is one issued with the name of the owner printed on the face of the certificate. It can be transferred to another individual only with the owner's endorsement.

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FAQ

The Investment Adviser must submit a Form U-4, the Uniform Application for Securities Industry Registration or Transfer, and the initial license application fee of $45 to the Investment Adviser Registration Depository (IARD) for all persons who will act as Representatives of the Investment Adviser in the District.

The SEC requires an investment adviser to register with the SEC if it has assets under management of at least $100 million or the investment adviser provides investment advice to an investment company registered under the Investment Company Act of 1940 (SEC Rule 203A-1).

Investment Advisers and Federal Covered Advisers Under DC Official Code §31-5602.02 (a), no person shall transact business in the District of Columbia as an investment adviser unless the person is licensed or exempt from the licensing requirement.

An investment adviser is exempt from the requirement to register with the SEC under the private fund adviser exemption if it solely advises ?private funds? and its total ?regulatory assets under management? in the United States are less than $150 million.

The Most Common Financial Advisor Licenses As a general rule, to work as a financial advisor you must have passed the exams for your practice area. The Financial Industry Regulatory Authority (FINRA) oversees the licensing exams required by most states.

Any firm or individual who acts as an investment advisor on behalf of an investment company is also required to file with the SEC, regardless of the number of assets under management.

Organizations that are exempt from the definition of an investment advisor include: Banks, savings and loan associations, and other depository institutions that are regulated by state or federal banking agencies. insurance companies that are regulated by state insurance departments.

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District of Columbia Registered Investment Bond