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SEC Rule 206(1)

Prohibits any device or scheme that might be used to defraud a client or prospective client.

Rule Overview

Jurisdiction: United States

Regulator: SEC

Topic: Fraud

Overview
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Prohibits investment adviser from employing, directly or indirectly, any:

  • device
  • scheme
  • artifice

to defraud any client or prospective client.

The prohibition covers the use of “mails” as well as any “means or instrumentality of interstate commerce”.

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