---
kind: "section"
citation: "15 U.S.C. § 80b–4a"
title: "15"
title_heading: "Commerce and Trade"
number: "80b–4a"
heading: "Prevention of misuse of nonpublic information"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/80b-4a"
units:
  - "Chapter 2D — Investment Companies and Advisers"
  - "Subchapter II — Investment Advisers"
---

# §80b–4a. Prevention of misuse of nonpublic information


Every [investment adviser](/usc/15/80b–2.md?p=a-11) subject to [section 80b–4 of this title](/usc/15/80b–4.md) shall establish, maintain, and enforce written policies and procedures reasonably designed, taking into consideration the nature of such [investment adviser](/usc/15/80b–2.md?p=a-11)’s business, to prevent the misuse in violation of this chapter or the [Securities](/usc/15/80a–2.md?p=a-36) Exchange Act of 1934 [[15 U.S.C. 78a](/usc/15/78a.md) et seq.], or the rules or regulations thereunder, of material, nonpublic information by such [investment adviser](/usc/15/80b–2.md?p=a-11) or any [person](/usc/15/80a–2.md?p=a-28) associated with such [investment adviser](/usc/15/80b–2.md?p=a-11). The [Commission](/usc/15/80a–2.md?p=a-7), as it deems necessary or appropriate in the public interest or for the protection of investors, shall adopt rules or regulations to require specific policies or procedures reasonably designed to prevent misuse in violation of this chapter or the [Securities](/usc/15/80a–2.md?p=a-36) Exchange Act of 1934 (or the rules or regulations thereunder) of material, nonpublic information.


## Source credit

(Aug. 22, 1940, ch. 686, title II, § 204A, as added Pub. L. 100–704, § 3(b)(2), Nov. 19, 1988, 102 Stat. 4680.)

## Notes

### Editorial Notes

### References in Text

The Securities Exchange Act of 1934, referred to in text, is act June 6, 1934, ch. 404, 48 Stat. 881, which is classified principally to chapter 2B (§ 78a et seq.) of this title. For complete classification of this Act to the Code, see section 78a of this title and Tables.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section not applicable to actions occurring before Nov. 19, 1988, see section 9 of Pub. L. 100–704 set out as an Effective Date of 1988 Amendment note under section 78o of this title.