According to the Investment Advisers Act of 1940, under which of the following circumstances is an exculpatory provision acceptable in a contract between an investment adviser and its clients?

According to the Investment Advisers Act of 1940, under which of the following circumstances is an exculpatory provision acceptable in a contract between an investment adviser and its clients?


A) This provision is prohibited under all circumstances.

B) The client has received written disclosure of this provision and has signed a written acceptance prior to any transaction.

C) The client is a broker/dealer.

D) The client is purchasing government securities only.



Answer: A) This provision is prohibited under all circumstances.


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