Honesty Bond

Your parents always told you “honesty is the best policy.” Here’s a financial instrument to prove it.

Think “bond” here like "posting bond"...like those 200 parking tickets finally caught up with you and your parents have to bail you out of jail. An honesty bond insures against theft or fraud by employees.

Financial professionals get bonded as a way to provide assurance to their potential clients that they will honestly oversee their finances. If theft happens, the bond will become forfeit with the funds used to reimburse the victims. Plus, the perpetrators would face potential criminal charges, with that jail-bond thing coming into literal effect here as well.