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