Vermont § 5502 - Prohibited conduct in providing investment advice

§ 5502. Prohibited conduct in providing investment advice

• (a) It is unlawful for a person that advises others for compensation, either directly
  or indirectly or through publications or writings, as to the value of securities or
  the advisability of investing in, purchasing, or selling securities or that, for compensation
  and as part of a regular business, issues or adopts analyses or reports relating to
  securities: (1) to employ a device, scheme, or artifice to defraud another person; (2) to make an untrue statement of a material fact or to omit to state a material fact
  necessary in order to make the statements made, in light of the circumstances under
  which they were made, not misleading; or (3) to engage in an act, practice, or course of business that operates or would operate
  as a fraud or deceit upon another person. (b) A rule adopted under this chapter may define an act, practice, or course of business
  of an investment adviser or an investment adviser representative, other than a supervised
  person of a federal covered investment adviser, as fraudulent, deceptive, or manipulative,
  and prescribe means reasonably designed to prevent investment advisers and investment
  adviser representatives, other than supervised persons of a federal covered investment
  adviser, from engaging in acts, practices, and courses of business defined as fraudulent,
  deceptive, or manipulative. (c) A rule adopted under this chapter may specify the contents of an investment advisory
  contract entered into, extended, or renewed by an investment adviser. (Added 2005, No. 11, § 1, eff. Jan. 1, 2006.)