Screen an adviser communication against the advisers fraud section
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the communication, quote each statement about a client or prospective client, the product or service described, and whether the file says the communication used the mails or a means of interstate commerce. Do not decide that a statement is fraudulent, deceptive, or manipulative.
- What the lawyer must review
- The lawyer applies 15 USC 80b-6, section 206 of the Investment Advisers Act. It is unlawful for any investment adviser, by use of the mails or any means or instrumentality of interstate commerce, directly or indirectly, to employ any device, scheme, or artifice to defraud any client or prospective client; to engage in any transaction, practice, or course of business which operates as a fraud or deceit upon any client or prospective client; or to engage in any act, practice, or course of business which is fraudulent, deceptive, or manipulative. Paragraph (4) also says the Commission shall by rules define, and prescribe means reasonably designed to prevent, such acts. Paragraph (3) is a separate rule: an adviser acting as principal, or as broker for another person, must disclose in writing before completion of the transaction the capacity in which the adviser is acting and obtain the client's consent. The GovInfo page is the 2023 edition and contains the same four paragraphs. The lawyer decides which paragraph, if any, the communication raises.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Do not begin AI assistance until the responsible lawyer has defined and confirmed its permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Confirm instructions and personal circumstances through appropriate direct engagement. Have the responsible lawyer assess safety, capacity or vulnerability concerns and escalation.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.