View all text of Subchapter II [§ 80b-1 - § 80b-21]
§ 80b–11. Rules, regulations, and orders of Commission
(a) Power of Commission
(b) Effective date of regulations
(c) Orders of Commission after notice and hearing; type of notice
(d) Good faith compliance with rules and regulations
(e) Disclosure rules on private funds
(g)2
2 So in original. No subsec. (f) has been enacted.
Standard of conduct(1) In general
(2) Retail customer defined
For purposes of this subsection, the term “retail customer” means a natural person, or the legal representative of such natural person, who—
(A) receives personalized investment advice about securities from a broker, dealer, or investment adviser; and
(B) uses such advice primarily for personal, family, or household purposes.
(h) Other matters
The Commission shall—
(1) facilitate the provision of simple and clear disclosures to investors regarding the terms of their relationships with brokers, dealers, and investment advisers, including any material conflicts of interest; and
(2) examine and, where appropriate, promulgate rules prohibiting or restricting certain sales practices, conflicts of interest, and compensation schemes for brokers, dealers, and investment advisers that the Commission deems contrary to the public interest and the protection of investors.
(i) Harmonization of enforcement
The enforcement authority of the Commission with respect to violations of the standard of conduct applicable to an investment adviser shall include—
(1) the enforcement authority of the Commission with respect to such violations provided under this subchapter; and
(2) the enforcement authority of the Commission with respect to violations of the standard of conduct applicable to a broker or dealer providing personalized investment advice about securities to a retail customer under the Securities Exchange Act of 1934 [15 U.S.C. 78a et seq.], including the authority to impose sanctions for such violations, and
the Commission shall seek to prosecute and sanction violators of the standard of conduct applicable to an investment adviser under this subchapter to same extent as the Commission prosecutes and sanctions violators of the standard of conduct applicable to a broker or dealer providing personalized investment advice about securities to a retail customer under the Securities Exchange Act of 1934 [15 U.S.C. 78a et seq.].
(Aug. 22, 1940, ch. 686, title II, § 211, 54 Stat. 855; Pub. L. 86–507, § 1(16), June 11, 1960, 74 Stat. 201; Pub. L. 86–750, § 14, Sept. 13, 1960, 74 Stat. 888; Pub. L. 100–181, title VII, § 705, Dec. 4, 1987, 101 Stat. 1264; Pub. L. 111–203, title IV, § 406, title IX, § 913(g)(2), (h)(2), July 21, 2010, 124 Stat. 1574, 1828, 1829.)