A new law has affected investment advisers and affiliates in the state of Arkansas. The new law, named HB 1877 alters the surety bond requirements for investment advisers and agents of a broker-dealer or of an investment adviser. The pervious law stated that investment advisers who manage client funds or who have flexible authority and control over any client’s account were required to acquire a surety bond in the quantity of $50,000. All agents were required to acquire a surety bond in the amount of $25,000, except if the Securities Commissioner stated otherwise. Under HB 1877, the Securities Commissioner will establish the quantity required for investment advisers and agents through regulations. The existing law provides the Securities Commissioner such authority for broker-dealer bonds. The new law also abolishes the use of cash deposits or securities in place of the bond.