Series 24: 2.7.10.3. Fidelity Bonds

 2.7.10.3.  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