Prohibited practices/acts of unworthiness (HAR §16-39-470)
The following are some examples of prohibited practices of investment advisers. This list is a small sample and is not in any way all inclusive.
- Unsuitable recommendations
- Exercising discretionary authority without authorization to do so
- Churning in a client’s account
- Unauthorized transactions
- Unauthorized third-party trading
- Making loans to/from clients
- Misrepresentations concerning advisory services
- Charging unreasonable advisory fees
- Failure to disclose conflicts of interest
- Guaranteeing specific results
- Disclosure of private information
- Making false, misleading, deceptive, exaggerated, or flamboyant representations