2009 California Civil Code - Section 3372 :: Chapter 1.5. Investment Advisers

CIVIL CODE
SECTION 3372

3372.  (a) Any person engaged in the business of advising others for
compensation as to the advisability of purchasing, holding or
selling property for investment and who represents himself or herself
to be an expert with respect to investment decisions in such
property, or any class of such property, shall be liable to any
person to whom such advisory services are furnished for compensation
and who is damaged by reason of such person's reliance upon such
services, for the amount of such compensation and for such damages,
unless the person rendering such services proves that such services
were performed with the due care and skill reasonably to be expected
of a person who is such an expert.
   (b) For the purposes of this section, the following apply:
   (1) A person represents that such person is an "expert" within the
meaning of this section if such person represents that he or she is
a "financial planner," "financial adviser," "financial counselor,"
"financial consultant" or an "investment adviser," "investment
counselor" or "investment consultant" or that such person renders
"financial planning services," "financial advisory services,"
"financial counseling services," "financial consulting services" or
"investment advisory services," "investment counseling services" or
"investment consulting services" or makes substantially equivalent
representations with respect to such person's business or
qualifications.
   (2) "Person" includes an individual, corporation, partnership,
limited liability company, joint venture, an association, joint stock
company, a trust or unincorporated association.
   (c) The following persons are not liable under the provisions of
this section:
   (1) Any person, when engaged in the purchase or sale of tangible
personal property for his or her own account, and the agents and
employees of such persons.
   (2) Any person, and the agents and employees of such person,
licensed under, exempted from licensing under, or not subject to
licensing under by reason of an express exclusion from a definition
contained in, the Commodity Exchange Act, the Investment Advisers Act
of 1940, the California Commodity Law, the Corporate Securities Law
of 1968, the Insurance Code, the Real Estate Law, or any state or
federal law for the licensing and regulation of banks or savings and
loan associations.


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