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Title 15, Commerce and TradeRelease 119-73not60

§80b–8 General Prohibitions

Title 15 › Chapter 2D— INVESTMENT COMPANIES AND ADVISERS › Subchapter II— INVESTMENT ADVISERS › § 80b–8

Last updated Apr 3, 2026|Official source

Summary

People registered under this law must not say or hint that the U.S. government or any government agency has sponsored, approved, recommended, or checked their skills or qualifications. They may state that they are registered under this law or under the Securities Exchange Act of 1934, but only if the statement is true and does not make the registration sound like more than it is. They must not call themselves "investment counsel" or use that name for their business unless two things are true: their main business is acting as an investment adviser, and a big part of their work is supervising investments. They also cannot do by someone else what they are not allowed to do themselves.

Full Legal Text

Title 15, §80b–8

Commerce and Trade, Source: USLM XML via OLRC

(a)It shall be unlawful for any person registered under section 80b–3 of this title to represent or imply in any manner whatsoever that such person has been sponsored, recommended, or approved, or that his abilities or qualifications have in any respect been passed upon by the United States or any agency or any officer thereof.
(b)No provision of subsection (a) shall be construed to prohibit a statement that a person is registered under this subchapter or under the Securities Exchange Act of 1934 [15 U.S.C. 78a et seq.], if such statement is true in fact and if the effect of such registration is not misrepresented.
(c)It shall be unlawful for any person registered under section 80b–3 of this title to represent that he is an investment counsel or to use the name “investment counsel” as descriptive of his business unless (1) his or its principal business consists of acting as investment adviser, and (2) a substantial part of his or its business consists of rendering investment supervisory services.
(d)It shall be unlawful for any person indirectly, or through or by any other person, to do any act or thing which it would be unlawful for such person to do directly under the provisions of this subchapter or any rule or regulation thereunder.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Securities Exchange Act of 1934, referred to in subsec. (b), is act June 6, 1934, ch. 404, 48 Stat. 881, which is classified principally to chapter 2B (§ 78a et seq.) of this title. For complete classification of this Act to the Code, see section 78a of this title and Tables.

Amendments

1960—Pub. L. 86–750, § 10, substituted “General prohibitions” for “Unlawful representations” in section catchline. Subsec. (c). Pub. L. 86–750, § 11(a), authorized representation as an investment counsel if person’s principal business consisted of acting as investment adviser, and a substantial part of the business was rendering investment supervisory services, and struck out the requirements that the person be primarily engaged in rendering investment supervisory services, or that his registration application state that the person is, or is about to become engaged primarily in rendering investment advisory services. Subsec. (d). Pub. L. 86–750, § 11(b), added subsec. (d).

Executive Documents

Transfer of Functions

For

Transfer of Functions

of Securities and Exchange Commission, with certain exceptions, to Chairman of such Commission, see Reorg. Plan No. 10 of 1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out under section 78d of this title.

Reference

Citations & Metadata

Citation

15 U.S.C. § 80b–8

Title 15, Commerce and Trade

Last Updated

Apr 3, 2026

Release point: 119-73not60