The Vermont Statutes Online

Title 9 : Commerce and Trade

Chapter 150 : Securities Act

Subchapter 005 : FRAUD AND LIABILITIES

• § 5502. Prohibited conduct in providing investment advice

  (a) It is unlawful for a person that advises others for compensation, either directly or indirectly or through publications or writings, as to the value of securities or the advisability of investing in, purchasing, or selling securities or that, for compensation and as part of a regular business, issues or adopts analyses or reports relating to securities:

  (1) to employ a device, scheme, or artifice to defraud another person;

  (2) to make an untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or

  (3) to engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person.

  (b) A rule adopted under this chapter may define an act, practice, or course of business of an investment adviser or an investment adviser representative, other than a supervised person of a federal covered investment adviser, as fraudulent, deceptive, or manipulative, and prescribe means reasonably designed to prevent investment advisers and investment adviser representatives, other than supervised persons of a federal covered investment adviser, from engaging in acts, practices, and courses of business defined as fraudulent, deceptive, or manipulative.

  (c) A rule adopted under this chapter may specify the contents of an investment advisory contract entered into, extended, or renewed by an investment adviser. (Added 2005, No. 11, § 1, eff. Jan. 1, 2006.)