2005 Nevada Revised Statutes - Chapter 628A — Financial Planners

CHAPTER 628A - FINANCIAL PLANNERS

NRS 628A.010 Definitions.

NRS 628A.020 Dutiesof financial planner.

NRS 628A.030 Liabilityof financial planner.

NRS 628A.040 Financialplanner required to maintain insurance for liability or surety bond.

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NRS 628A.010 Definitions. As used in this chapter, unless the context otherwiserequires:

1. Client means a person who receives advice from afinancial planner.

2. Compensation means a fee for services provided bya financial planner to a client or a commission or other remuneration derivedby a financial planner from a person other than the client as the result of thepurchase of a good or service by the client.

3. Financial planner means a person who forcompensation advises others upon the investment of money or upon provision forincome to be needed in the future, or who holds himself out as qualified toperform either of these functions, but does not include:

(a) An attorney and counselor at law admitted by theSupreme Court of this State;

(b) A certified public accountant or a publicaccountant licensed pursuant to NRS 628.190to 628.310, inclusive, or 628.350;

(c) A broker-dealer or sales representative licensedpursuant to NRS 90.310 or exempt under NRS 90.320;

(d) An investment adviser licensed pursuant to NRS 90.330 or exempt under NRS 90.340; or

(e) A producer of insurance licensed pursuant to chapter 683A of NRS or an insurance consultantlicensed pursuant to chapter 683C of NRS,

whose adviceupon investment or provision of future income is incidental to the practice ofhis profession or business.

(Added to NRS by 1993, 1372; A 1995, 1453, 1635;1997, 530; 2001, 2256)

NRS 628A.020 Dutiesof financial planner. A financial planner hasthe duty of a fiduciary toward a client. He shall disclose to the client, atthe time advice is given, any gain he may receive, such as profit orcommission, if the advice is followed. He shall make diligent inquiry of eachclient to ascertain initially, and keep himself currently informed concerning,the clients financial circumstances and obligations and the clients presentand anticipated obligations to and goals for his family.

(Added to NRS by 1993, 1372)

NRS 628A.030 Liabilityof financial planner.

1. If loss results from following a financialplanners advice under any of the circumstances listed in subsection 2, theclient may recover from the financial planner in a civil action the amount ofthe economic loss and all costs of litigation and attorneys fees.

2. The circumstances giving rise to liability of afinancial planner are that the financial planner:

(a) Violated any element of his fiduciary duty;

(b) Was grossly negligent in selecting the course ofaction advised, in the light of all the clients circumstances known to thefinancial planner; or

(c) Violated any law of this State in recommending theinvestment or service.

(Added to NRS by 1993, 1372)

NRS 628A.040 Financialplanner required to maintain insurance for liability or surety bond. A financial planner shall maintain insurance covering liabilityfor errors or omissions, or a surety bond to compensate clients for lossesactionable pursuant to this chapter, in an amount of $1,000,000 or more.

(Added to NRS by 1993, 1372)

 

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