ERISA requires those who manage, oversee, recommend or handle funds or other property of an employee benefit plan to be covered by a Fidelity Bond, according to the U.S. Department of Labor.

AMBA offers both 1st and 3rd Party ERISA Bonds (for Investment Advisers). These bonds protect against acts of fraud or dishonesty by any officer, trustee, employee, administrator or manager of the insured benefit plan. As defined by the Employee Retirement Income Security Act of 1974, the limit of liability must be 10% of each plan’s assets, subject to a minimum of $1,000 and up to a maximum of $500,000.

Most recent changes to this rule is if the plan invests in employer securities, such as company shares, the maximum bond amount is $1,000,000.

1st Party ERISA Bonds

To protect the assets in your qualified pension and 401(k) plans as required by ERISA.

3rd Party ERISA Bonds

Even for Investment Advisers with non-discretionary control, we can tailor a bond to incorporate all of the plans you manage and administer to protect the qualified assets of those plans and satisfy your bonding requirement under ERISA.

What determines qualified vs. non-qualified?

• Qualifying plan assets are those held by a financial institution, such as a bank, insurance company, broker-dealer or regulated entity, RIA or regulated entity, mutual funds, participant loans, qualifying employer securities and self-directed individual account plans.
• Non-qualifying plan assets are those not held by a bank or financial institution. For instance, a limited partnership, artwork, collectibles, mortgages, real-estate and securities of "closely held" companies are examples of non-qualified plans.