Ohio Administrative Code › Title 1301:6 - Division of Securities › Chapter 1301:6-3 - Registration of Securities; Licensing › Section 1301:6-3-44 - Investment adviser and investment adviser representative fraudulent practices; general prohibitions; cross transactions

Current through all regulations passed and filed through July 1, 2024
(A) Advertisements by investment advisers and
			 investment adviser representatives.
(1) It
			 shall constitute a fraudulent, deceptive, or manipulative act, practice, or
			 course of business within the meaning of section
			 1707.44 of the
			 Revised Code for any investment adviser licensed or required to be licensed
			 under Chapter 1707. of the Revised Code, or any investment adviser
			 representative employed by or associated with an investment adviser licensed or
			 required to be licensed under Chapter 1707. of the Revised Code, directly or
			 indirectly, to publish, circulate, or distribute any advertisement:
(a) Which refers, directly, or indirectly, to
			 any testimonial of any kind concerning the investment adviser or investment
			 adviser representative or concerning any advice, analysis, report or other
			 service rendered by the investment adviser or investment adviser
			 representative; or
(b) Which
			 refers, directly or indirectly, to past specific recommendations of the
			 investment adviser or investment adviser representative which were or would
			 have been profitable to any person; provided, however, that this shall not
			 prohibit an advertisement which sets out or offers to furnish a list of all
			 recommendations made by the investment adviser or investment adviser
			 representative within the immediately preceding period of not less than one
			 year if the advertisement, and the list if it is furnished separately:
(i) States the name of each security
			 recommended, the date and nature of each recommendation including, but not
			 limited to, whether to buy, sell or hold, the market price at that time, the
			 price at which the recommendation was to be acted upon, and the market price of
			 each security as of the most recent practicable date; and
(ii) Contains the following cautionary legend
			 on the first page thereof in print or type as large as the largest print or
			 type used in the body or text thereof:
"It should not be assumed that recommendations made in the
				future will be profitable or will equal the performance of the securities in
				this list";
or
(c) Which represents, directly or indirectly,
			 that any graph, chart, formula or other device being offered can in and of
			 itself be used to determine which securities to buy or sell, or when to buy or
			 sell them; or which represents, directly or indirectly, that any graph, chart,
			 formula or other device being offered will assist any person in making his own
			 decisions as to which securities to buy or sell, or when to buy or sell them,
			 without prominently disclosing in the advertisement the limitations thereof and
			 the difficulties with respect to its use; or
(d) Which contains any statement to the
			 effect that any report, analysis, or other service will be furnished free or
			 without charge, unless the report, analysis or other service actually is or
			 will be furnished entirely free and without any condition or obligation,
			 directly or indirectly; or
(e)
			 Which contains any untrue statement of a material fact, or which is otherwise
			 false or misleading.