It shall constitute a “Fraudulent, Deceptive, or Manipulative Act or Practice” as used in these rules for any investment adviser to enter into or offer to enter into an investment advisory contract, or in any way perform an investment advisory contract, if the investment adviser:

1. (1) Fails to provide the customer with a written disclosure statement which may be either a copy of Part II of Form ADV or a written document containing at least the information required by Part II of Form ADV:

   1. (a) At least 48 hours prior to entering into any written or oral investment advisory contract with a customer; or
   2. (b) At the time of entering into any advisory contract, if the customer has a right to terminate the contract without penalty within five business days after entering the contract.
2. (2) Fails to offer an existing customer a copy of the written disclosure statement, without charge, at least annually.

Statutory/Other Authority

ORS 59.175(1), 59.205(2) & 59.285

Statutes/Other Implemented

ORS 59.205(2)

History

FCS 8-1994, f. & cert. ef. 6-1-94