1. It is unlawful for any person registered as a broker-dealer or agent under this chapter to represent or imply in any manner whatsoever that such person has been sponsored, recommended, or approved or that the person's abilities or qualifications have in any respect been passed upon by the administrator. Nothing in this subsection prohibits a statement other than in a paid advertisement that a person is registered under this chapter, if such statement is true in fact and if the effect of such registration is not misrepresented.
2. a. Neither the fact that a registration statement has been filed under this chapter nor the fact that such statement has become effective constitutes a finding by the administrator that any document filed under this chapter is true, complete or not misleading. Neither any such fact nor the fact that an exemption is available for a security or a transaction means that the administrator has passed in any way upon the merits or qualifications of, or has recommended or given approval to, any person, security or transaction.
b. It is unlawful to make, or cause to be made, to any prospective purchaser or any other person, any representation inconsistent with paragraph "a" of this subsection.
3. No state official or employee of the state shall use such person's name in an official capacity in connection with the endorsement or recommendation of the organization or the promotion of any issuer or in the sale to the public of its securities, nor shall anyone use the stationery of the state or of any official thereof in connection with any such transaction.
[C24, 27, § 8580; C31, 35, § 8581-c24; C39, § 8581.29; C46, 50, 54, 58, 62, 66, 71, 73, 75, § 502.29; C77, 79, 81, § 502.406]
Referred to in § 502.501
Iowa General Assembly
Search: Iowa Code 1997
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