What is the role of a fidelity bond for a broker accessing significant funds?

A fidelity bond is a specific type of insurance that protects against losses caused by fraudulent acts committed by employees or agents of a business, in this case, a broker. When brokers handle significant funds, particularly those belonging to clients, a fidelity bond provides a safety net against any potential misappropriation or embezzlement of those funds. This assurance is critical in real estate transactions, where large amounts of money are typically involved. By having this bond in place, brokers not only enhance their credibility and trustworthiness with clients but also ensure they have the financial backing to recover from any possible financial loss resulting from dishonest actions by employees.

The other options do not accurately reflect the primary purpose of a fidelity bond. Ensuring customer satisfaction encompasses a broader array of client relations and service quality but does not directly relate to financial protection against fraudulent activities. Compliance with marketing regulations addresses advertising practices and disclosures rather than the safeguarding of funds. Providing insurance for properties sold pertains to homeowners' insurance or title insurance, which are separate issues from the fidelity protection a broker maintains for client funds.