
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 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).
