17-12a502.Prohibited conduct in providing
investment advice.
(a) Fraud in providing investment advice. It is
unlawful for a person that advises others for compensation, either
directly or indirectly or through publications or writings, as to
the value of securities or the advisability of investing in,
purchasing, or selling securities or that, for compensation and as
part of a regular business, issues or promulgates analyses or
reports relating to securities:
(1) To employ a device, scheme, or artifice to defraud another
person; or
(2) to engage in an act, practice, or course of business that
operates or would operate as a fraud or deceit upon another person.
(b) Rules defining fraud. A rule adopted under this act may
define an act, practice, or course of business of an investment
adviser or an investment adviser representative, other than a
supervised person of a federal covered investment adviser, as
fraudulent, deceptive, or manipulative, and prescribe means
reasonably designed to prevent investment advisers and investment
adviser representatives, other than supervised persons of a federal
covered investment adviser, from engaging in acts, practices, and
courses of business defined as fraudulent, deceptive, or
manipulative.
(c) Rules specifying contents of advisory contract. A rule
adopted under this act may specify the contents of an investment advisory
contract entered into, extended, or renewed by an
investment adviser.
17-12a502.Prohibited conduct in providing
investment advice.
(a) Fraud in providing investment advice. It is
unlawful for a person that advises others for compensation, either
directly or indirectly or through publications or writings, as to
the value of securities or the advisability of investing in,
purchasing, or selling securities or that, for compensation and as
part of a regular business, issues or promulgates analyses or
reports relating to securities:
(1) To employ a device, scheme, or artifice to defraud another
person; or
(2) to engage in an act, practice, or course of business that
operates or would operate as a fraud or deceit upon another person.
(b) Rules defining fraud. A rule adopted under this act may
define an act, practice, or course of business of an investment
adviser or an investment adviser representative, other than a
supervised person of a federal covered investment adviser, as
fraudulent, deceptive, or manipulative, and prescribe means
reasonably designed to prevent investment advisers and investment
adviser representatives, other than supervised persons of a federal
covered investment adviser, from engaging in acts, practices, and
courses of business defined as fraudulent, deceptive, or
manipulative.
(c) Rules specifying contents of advisory contract. A rule
adopted under this act may specify the contents of an investment advisory
contract entered into, extended, or renewed by an
investment adviser.
17-12a502.Prohibited conduct in providing
investment advice.
(a) Fraud in providing investment advice. It is
unlawful for a person that advises others for compensation, either
directly or indirectly or through publications or writings, as to
the value of securities or the advisability of investing in,
purchasing, or selling securities or that, for compensation and as
part of a regular business, issues or promulgates analyses or
reports relating to securities:
(1) To employ a device, scheme, or artifice to defraud another
person; or
(2) to engage in an act, practice, or course of business that
operates or would operate as a fraud or deceit upon another person.
(b) Rules defining fraud. A rule adopted under this act may
define an act, practice, or course of business of an investment
adviser or an investment adviser representative, other than a
supervised person of a federal covered investment adviser, as
fraudulent, deceptive, or manipulative, and prescribe means
reasonably designed to prevent investment advisers and investment
adviser representatives, other than supervised persons of a federal
covered investment adviser, from engaging in acts, practices, and
courses of business defined as fraudulent, deceptive, or
manipulative.
(c) Rules specifying contents of advisory contract. A rule
adopted under this act may specify the contents of an investment advisory
contract entered into, extended, or renewed by an
investment adviser.