Each state has its own securities laws. The following are selected sections of the Alaska securities laws that are generally applicable in FINRA arbitrations.
AS 45.55.023. Unethical Business Practices of State Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers.
(a) A person who is a state investment adviser, investment adviser representative, or federal covered adviser is a fiduciary and has a duty to act primarily for the benefit of the client. The provisions of this section apply to federal covered advisers only to the extent that the conduct alleged is fraudulent or deceptive under AS 45.55.010 (a) or 45.55.020(a), or to the extent otherwise provided by P.L. 104 – 290, 101 Stat. 3416 – 3440 (National Securities Markets Improvement Act of 1996). While the extent and nature of the duty to act primarily for the benefit of the client varies according to the nature of the relationship between an investment adviser and its clients and the circumstances of each case, a state investment adviser, an investment adviser representative, or a federal covered adviser may not engage in dishonest or unethical practices or conduct in the investment advisory business under AS 45.55.060 (a)(7), including
(1) recommending to a client to whom investment supervisory, management, or consulting services are provided the purchase, sale, or exchange of a security without reasonable grounds to believe that the transaction or recommendation is suitable for the client on the basis of information furnished by the client after reasonable inquiry concerning the client’s investment objectives, financial situation and needs, and other information known by the state investment adviser, investment adviser representative, or federal covered adviser;
(3) in a client’s account inducing trading that is excessive in size or frequency in view of the financial resources, investment objectives, and character of the account if the state investment adviser, investment adviser representative, or federal covered adviser can directly benefit from the number of securities transactions effected in a client’s account.
If you have questions about a state securities law, The White Law Group may be able to help. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida. With over 30 years of securities law experience, including experience working at FINRA (f/k/a the NASD) and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions.
For more information on The White Law Group, please visit our website at https://whitesecuritieslaw.com.Tags: 101 Stat. 3416, Alaska Securities Law, AS 45.55.020(a), AS 45.55.023, AS 45.55.060, Boca Raton, broker dealer, broker fraud, Chicago, excessive trading, fiduciary duty, FINRA, Florida, Illinois, investment adviser, investment losses, investor protection, NASD, National Securities Markets Improvement Act, P.L. 104-290, SEC, Securities Attorney, securities compliance, securities regulation, suitability, unethical practices Last modified: January 5, 2023