2005 Minnesota Statutes

     80A.02 Prohibited activities. 

    Subdivision 1.    Advisory activities and principal 
 transactions.  (a) It is unlawful for any person who receives, 
 directly or indirectly, any consideration from another primarily 
 for advising the other as to the value of securities or their 
 purchase or sale: 

    (1)  to employ any device, scheme, or artifice to defraud 
 the other; or 

    (2) to engage in any act, practice, or course of business 
 which operates or would operate as a fraud or deceit upon the 
 other. 

    (b) It is unlawful for an investment adviser to knowingly 
 sell any security to or purchase any security from a client 
 while acting as principal for the person's own account or 
 knowingly effect any sale or purchase of any security for the 
 account of a client while acting as broker for one other than 
 the client, unless the person discloses to the client in writing 
 before the execution of the transaction the capacity in which 
 the person is acting and obtains the consent of the client to 
 the transaction. 

    Subd. 1a.    Solicitation activities.  In the 
 solicitation of advisory clients, it is unlawful for any person 
 to make any untrue statements of material facts, or, in light of 
 the circumstances under which they are made, to omit to state 
 material facts necessary in order to make the statements made 
 not misleading.  

    Subd. 2.    Contract activities.  It is unlawful for any 
 investment adviser to enter into, extend, or renew any 
 investment advisory contract the terms of which are in 
 contravention of rules the commissioner prescribes as necessary 
 or appropriate in the public interest or for the protection of 
 investors.  

    Subd. 3.    Activities as custodian of certain funds.  
 It is unlawful for any investment adviser to take or have 
 custody of any securities or funds of any client in 
 contravention of rules the commissioner prescribes as necessary 
 or appropriate in the public interest or for the protection of 
 investors.  

    HIST: 1973 c 451 s 2; 1983 c 284 s 1; 1986 c 444; 1997 c 222 s 
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