CITE

    15 USC Sec. 80b-6                                           01/05/2009

EXPCITE

    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 2D - INVESTMENT COMPANIES AND ADVISERS
    SUBCHAPTER II - INVESTMENT ADVISERS

HEAD

    Sec. 80b-6. Prohibited transactions by investment advisers

STATUTE

      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.

SOURCE

    (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).