Page:United States Statutes at Large Volume 74.djvu/927

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[74 Stat. 887]
[74 Stat. 887]
PUBLIC LAW 86-000—MMMM. DD, 1960

74 S T A T. ]

PUBLIC LAW 8 6 - 7 5 0 - S E P T. 13, 1960

887

SEC. 7. The introductory paragraph of section 205 of the Investment Advisers Act of 1940, as amended, is amended to read as fol- 15 USC 80b-5. lows: Invesirment a d "SEC. 205. No investment adviser, unless exempt from registration visory contracts. pursuant to section 203(b), shall make use of the mails or any means or instrumentality of interstate commerce, directly or indirectly, to enter into, extend, or renew any investment advisory contract, or in any way to perform any investment advisory contract entered into, extended, or renewed on or after the effective date of this title, if such contract>—". SEC. 8. The introductory paragraph of section 206 of the Investment Advisers Act of 1940, as amended, is amended by striking out "reg- 15 USC 80b-6. istered under section 203". SEC. 9. Section 206 of the Investment Advisers Act of 1940, as Prohibitions. amended, is amended by changing the period at the end thereof to a semicolon and by adding the following new paragraph: " (4) to engage in any act, practicej or course of business which is fraudulent, deceptive, or manipulative. The Commission shall, for the purposes of this paragraph (4) by rules and regulations define, and prescribe means reasonably designed to prevent, such acts, practices, and courses of business as are fraudulent, deceptive, or manipulative." SEC. 10. The caption of section 208 of the Investment Advisers Act of 1940, as amended, is amended by striking out "UNLAWFUL 15 USC 80b-8. REPRESENTATIONS" and inserting in lieu thereof "GENERAL PROHIBrnONS".

SEC. 11. (a) Subsection (c) of section 208 of the Investment Advisers Act of 1940, as amended, is amended to read as follows: "(c) I t shall be unlawful for any person registered under section 203 of this title to represent that he is an investment counsel or to use the name 'investment counsel' as descriptive of his business unless (1) his or its principal business consists of acting as investment adviser, and (2) a substantial part of his or its business consists of rendering investment supervisory services." (b) Section 208 of the Investment Advisers Act of 1940, as amended, is amended by adding the following new subsection: " (d) I t shall be unlawful for any person indirectly, or through or by any other person, to do any act or thing which it would be unlawful for such person to do directly under the provisions of this title or any rule or regulation thereunder." SEC. 12. Subsection (e) of section 209 of the Investment Advisers 15 USC 80b-9. Act of 1940, as amended, is amended by striking out "has engaged or is about to engage" in the first and in the second sentences and inserting in lieu thereof "has engaged, is engaged, or is about to engage"; by inserting in the first sentence after "any rule, regulation, or order hereunder," the first time that phrase appears, the following: "or that any person has aided, abetted, counseled, commanded, induced, or procured, is aiding, abetting, counseling, commanding, inducing, or procuring, or is about to aid, abet, counsel, command, induce, or procure such a violation,"; and by inserting in the second sentence, after "such act or practice,", the following: "or in aiding, abetting, counseling, commanding, inducing, or procuring any such act or practice,". SEC. 13. Subsection (b) of section 210 of the Investment Advisers 15 USC 80b-10. Act of 1940, as amended, is amended to read as follows: Disclostire "(b) Subject to the provisions of subsections (c) and (e) of sec- formation. of intion 209, the Commission, or any member, officer, or employee thereof, Restriction. shall not make public the fact that any examination or investigation under this title is being conducted, or the results of or any facts