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15 U.S.C. § 80b–8 — General prohibitions

submitted 86 years ago by ch. 686 to r/title-15-COMMERCE-AND-TRADE · 253 words · no verdicts yet

in plain englishAI-generated · not legal advice

This section bans registered advisers from claiming U.S. government endorsement. It also limits who can call themselves an 'investment counsel.' And it bans doing indirectly what the law forbids directly.

(a) Representations of sponsorship. A person registered under section 80b–3 cannot represent or imply, in any way, that the United States or any of its agencies or officers has sponsored, recommended, or approved them, or has evaluated their abilities or qualifications. (b) Statement of registration. Subsection (a) does not stop someone from truthfully stating that they are registered under this subchapter or under the Securities Exchange Act of 1934, as long as they do not misrepresent what that registration means. (c) Use of the name "investment counsel." A person registered under section 80b–3 cannot claim to be an "investment counsel," or use that term to describe their business, unless (1) their main business is acting as an investment adviser, and (2) a substantial part of their business is providing investment supervisory services. (d) Indirect means. It is illegal for a person to do indirectly, or through or by someone else, anything it would be illegal for that person to do directly under this subchapter or its rules.
the actual law source: uscode.house.gov ↗public domain
(a) Representations of sponsorship by United States or agency thereof

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) Statement of registration under Securities Exchange Act of 1934 provisions

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) Use of name “investment counsel” as descriptive of business

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) Use of indirect means to do prohibited act

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.

Source credit: (Aug. 22, 1940, ch. 686, title II, § 208, 54 Stat. 853; Pub. L. 86–750, §§ 10, 11, Sept. 13, 1960, 74 Stat. 887.)

history & why it existsrecord from the source credit
  • 1940Enacted · Act of Aug. 22, 1940, ch. 686 · 54 Stat. 853
  • 1960Amended · Pub. L. 86-750 · 74 Stat. 887

A history note hasn’t been published yet. The record shows enactment by ch. 686 on 1940-08-22.

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