2018 Rhode Island General Laws
Title 7 - Corporations, Associations and Partnerships
Chapter 7-11 Rhode Island Uniform Securities Act
Section 7-11-503 Prohibited transactions by investment advisers, federal covered advisers.
§ 7-11-503. Prohibited transactions by investment advisers, federal covered advisers.
An investment adviser, a federal covered adviser, or a person who represents an investment adviser or a federal covered adviser may not, directly or indirectly:
(1) Employ a device, scheme, or artifice to defraud a client;
(2) Engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon a client; or
(3) Act as principal for his or her own account, knowingly sell any security to or purchase any security from a client, or acting as broker for a person other than the client, knowingly effect any sale or purchase of any security for the account of the client, without disclosing to the client, in writing, before the completion of the transaction the capacity in which he or she is acting and obtaining the consent of the client to the transaction. The prohibitions of this subsection do not apply to a federal covered adviser or to any transaction with a customer of a broker-dealer if the broker-dealer is not acting as an investment adviser in relation to the transaction.
History of Section.
(P.L. 1990, ch. 460, § 2; P.L. 1997, ch. 69, § 1.)
