1.
An investment adviser, representative of an investment adviser or federal
covered adviser shall be deemed to have engaged in an unethical or dishonest
practice within the meaning of paragraph (h) of subsection 1 of
NRS
90.420 if the adviser or representative,
directly or indirectly, uses any advertisement:
(a) To refer to a testimonial of any kind
relating to:
(1) The adviser or a
representative of the investment adviser; or
(2) The advice, analysis, report or other
service rendered by the adviser or representative of the investment
adviser;
(b) To refer to
past specific recommendations of the adviser or representative of the
investment adviser that were or would have been profitable to any person,
unless the adviser or representative of the investment adviser furnishes or
offers to furnish a list of all recommendations made by the adviser or
representative of the investment adviser within the immediately preceding
1-year period, if the advertisement or list includes, without limitation:
(1) The name of each security
recommended;
(2) The date and
nature of each recommendation;
(3)
The market price of the security at that time and the price at which the
recommendation was to be acted upon by the adviser or representative of the
investment adviser;
(4) The most
recently available market price of each such security; and
(5) A legend on the first page of the
advertisement or list, in prominent print or type, that states that the reader
should not assume that recommendations made in the future will be profitable or
will equal the performance of the securities in the advertisement or
list;
(c) To represent
that any graph, chart, formula or other device being offered may, in and of
itself, be used to determine which securities to buy or sell, or when to buy or
sell the securities;
(d) To
represent, directly or indirectly, that any graph, chart, formula or other
device being offered will assist any person in making any decision of the
person as to which securities to buy or sell, or when to buy or sell them,
without prominently disclosing in such advertisement the limitations thereof
and the difficulties with respect to the use of the graph, chart, formula or
other device;
(e) To represent that
any report, analysis or other service will be furnished for free or without
charge, unless such report, analysis or other service actually is or will be
furnished entirely free and without any direct or indirect condition or
obligation;
(f) To represent that
the Administrator or the Division has approved any advertisement; or
(g) That contains any untrue statement of a
material fact or that is otherwise false or misleading.
2. The provisions of this section apply to
federal covered advisers as permitted by section 203A of the Investment
Advisers Act of 1940 and the National Securities Markets Improvement Act of
1996, Public Law No. 104-290.
3. As
used in this section, "advertisement" includes, without limitation, any notice,
circular, letter or other written communication addressed to more than one
person, or any notice or other announcement in an electronic or paper
publication, by radio or television or by any medium that offers:
(a) Any analysis, report or publication
concerning securities;
(b) Any
analysis, report, publication, graph, chart, formula or other device that is to
be used in making any determination as to when to buy or sell any security or
which security to buy or sell; or
(c) Any other investment advisory service
with regard to securities.
Added
to NAC by Sec'y of State by
R018-21A,
eff. 6/2/2023
