§ 502.501A — Prohibited transactions of broker-dealers and agents

Iowa § 502.501A

• Jurisdiction: Iowa
• Title XII: BUSINESS ENTITIES
• Ch. 502: UNIFORM SECURITIES ACT (BLUE SKY LAW)

Text

A broker-dealer or agent shall not effect a transaction in, or induce or attempt to induce
the purchase or sale of, any security in this state by means of any manipulative, deceptive,
or other fraudulent scheme, device, or contrivance, fictitious quotation, or in violation of
this chapter. A broker-dealer or agent shall not recommend to a customer the purchase,
sale, or exchange of a security without reasonable grounds to believe that the transaction
or recommendation is suitable for the customer based upon reasonable inquiry concerning
the customer’s investment objectives, financial situation and needs, and other relevant
information known by the broker-dealer.

Legislative History

[C31, 35, §8581-c18; C39, §8581.23; C46, 50, 54, 58, 62, 66, 71, 73, 75, §502.23; C77, 79, 81, §502.502]