§ 80b-6. — Prohibited transactions by investment advisers.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC80b-6]
TITLE 15--COMMERCE AND TRADE
CHAPTER 2D--INVESTMENT COMPANIES AND ADVISERS
SUBCHAPTER II--INVESTMENT ADVISERS
Sec. 80b-6. Prohibited transactions by investment advisers
It shall be unlawful for any investment adviser by use of the mails
or any means or instrumentality of interstate commerce, directly or
indirectly--
(1) to employ any device, scheme, or artifice to defraud any
client or prospective client;
(2) to engage in any transaction, practice, or course of
business which operates as a fraud or deceit upon any client or
prospective client;
(3) acting as principal for his own account, knowingly to sell
any security to or purchase any security from a client, or acting as
broker for a person other than such client, knowingly to effect any
sale or purchase of any security for the account of such client,
without disclosing to such client in writing before the completion
of such transaction the capacity in which he is acting and obtaining
the consent of the client to such transaction. The prohibitions of
this paragraph shall not apply to any transaction with a customer of
a broker or dealer if such broker or dealer is not acting as an
investment adviser in relation to such transaction.
(4) to engage in any act, practice, or course of business which
is fraudulent, deceptive, or manipulative. The Commission shall, for
the purposes of this paragraph (4) by rules and regulations define,
and prescribe means reasonably designed to prevent, such acts,
practices, and courses of business as are fraudulent, deceptive, or
manipulative.
(Aug. 22, 1940, ch. 686, title II, Sec. 206, 54 Stat. 852; Pub. L. 86-
750, Secs. 8, 9, Sept. 13, 1960, 74 Stat. 887.)
Amendments
1960--Pub. L. 86-750, Sec. 8, struck out ``registered under section
80b-3 of this title'' from introductory text.
Par. (4). Pub. L. 86-750, Sec. 9, added par. (4).
