FINRA 4360 – 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 proprietors, sole stockh
