A CLOSER LOOK AT THE LAW
RULE 206(4)-8
Rule 206(4)-8 was adopted by the SEC in August of 2007 6 and reads as follows:
(a) Prohibition. It shall constitute a fraudulent, deceptive, or manipulative act, practice, or course of business within the
meaning of section 206(4) of the Act (15 U.S.C. 80b6(4)) for any investment adviser to a pooled investment vehicle to:
(1) Make any untrue statement of a material fact or to omit to state a material fact necessary to make the statements made,
in the light of the circumstances under which they were made, not misleading, to any investor or prospective investor in the
pooled investment vehicle; or
(2) Otherwise engage in any act, practice, or course of business that is fraudulent, deceptive, or manipulative with respect
to any investor or prospective investor in the pooled investment vehicle.
(b) Definition. For purposes of this section “pooled investment vehicle” means any investment company as defined in
section 3(a) of the Investment Company Ac