---
kind: "section"
citation: "15 U.S.C. § 80b–6"
title: "15"
title_heading: "Commerce and Trade"
number: "80b–6"
heading: "Prohibited transactions by investment advisers"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/80b-6"
units:
  - "Chapter 2D — Investment Companies and Advisers"
  - "Subchapter II — Investment Advisers"
---

# §80b–6. Prohibited transactions by investment advisers


It shall be unlawful for any [investment adviser](/usc/15/80b–2.md?p=a-11) by use of the mails or any [means or instrumentality of interstate commerce](/usc/15/80a–2.md?p=a-25), directly or indirectly—

- (1) to employ any [device](/usc/15/55.md?p=d), scheme, or artifice to defraud any client or prospective client;
- (2) to engage in any transaction, practice, or course of business which operates as a fraud or deceit upon any client or prospective client;
- (3) acting as principal for his own account, knowingly to sell any [security](/usc/15/80a–2.md?p=a-36) to or purchase any [security](/usc/15/80a–2.md?p=a-36) from a client, or acting as [broker](/usc/15/80a–2.md?p=a-6) for a [person](/usc/15/80a–2.md?p=a-28) other than such client, knowingly to effect any sale or purchase of any [security](/usc/15/80a–2.md?p=a-36) for the account of such client, without disclosing to such client in writing before the completion of such transaction the capacity in which he is acting and obtaining the consent of the client to such transaction. The prohibitions of this paragraph shall not apply to any transaction with a customer of a [broker](/usc/15/80a–2.md?p=a-6) or [dealer](/usc/15/80a–2.md?p=a-11) if such [broker](/usc/15/80a–2.md?p=a-6) or [dealer](/usc/15/80a–2.md?p=a-11) is not acting as an [investment adviser](/usc/15/80b–2.md?p=a-11) in relation to such transaction; or
- (4) to engage in any act, practice, or course of business which is fraudulent, deceptive, or manipulative. The [Commission](/usc/15/80a–2.md?p=a-7) shall, for the purposes of this [paragraph (4)](#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.

## Source credit

(Aug. 22, 1940, ch. 686, title II, § 206, 54 Stat. 852; Pub. L. 86–750, §§ 8, 9, Sept. 13, 1960, 74 Stat. 887; Pub. L. 111–203, title IX, § 985(e)(2), July 21, 2010, 124 Stat. 1935.)

## Notes

### Editorial Notes

### Amendments

2010—Par. (3). Pub. L. 111–203 inserted “or” at end.

1960—Pub. L. 86–750, § 8, struck out “registered under section 80b–3 of this title” from introductory text.

Par. (4). Pub. L. 86–750, § 9, added par. (4).

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking.