§80b–6 Prohibited transactions by investment advisers

Summary

Investment advisers must not use mail, phone, internet, or other ways that cross state lines to cheat or trick current or potential clients, run business practices that deceive them, or mix their own trades with a client's without telling the client in writing before the trade and getting the client's consent. The rule about telling and getting consent does not apply when the transaction is with a broker‑dealer’s customer and the broker‑dealer is not acting as an investment adviser. The Securities and Exchange Commission will write rules to define and try to prevent fraudulent, deceptive, or manipulative acts.