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2007 Minnesota Statutes
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Chapter 80A
Section 80A.02
Topics
Recent History
- 2006 80A.02 Repealed 2006 c 196 art 1 s 51
- 1997 Subd. 1 Amended 1997 c 222 s 9
This is an historical version of this statute chapter. Also view the most recent published version.
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.
History: 1973 c 451 s 2; 1983 c 284 s 1; 1986 c 444; 1997 c 222 s 9
NOTE: This section is repealed by Laws 2006, chapter 196, article 1, section 51, effective
August 1, 2007. Laws 2006, chapter 196, article 1, section 52.
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.
History: 1973 c 451 s 2; 1983 c 284 s 1; 1986 c 444; 1997 c 222 s 9
NOTE: This section is repealed by Laws 2006, chapter 196, article 1, section 51, effective
August 1, 2007. Laws 2006, chapter 196, article 1, section 52.
Official Publication of the State of Minnesota
Revisor of Statutes