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40 ILCS 5/1-113.9
(40 ILCS 5/1-113.9)
Sec. 1-113.9.
Illegal investments.
A person registered as a dealer, salesperson, or investment adviser under the
Illinois Securities Law of 1953 who sells a pension fund a security, or engages
in a transaction with a pension fund, that is not authorized by this Code,
shall be subject to the penalty provisions of Subsection E of Section 8 of the
Illinois Securities Law of 1953, if (1) the dealer, salesperson, or investment
adviser has discretionary authority or control over the fund's assets and has
acknowledged in writing that it is acting in a fiduciary capacity for the fund,
(2) the fund has requested the investment advice of the dealer, salesperson, or
investment adviser and has provided the dealer, salesperson, or investment
adviser with its investment policy, and the dealer, salesperson, or investment
adviser acknowledges in writing that the fund is relying primarily on the
investment advice of that dealer, salesperson, or investment adviser, or (3)
the dealer, salesperson, or investment adviser knows or has reason to know that
the fund is not capable of independently evaluating investment risk or
exercising independent judgment with respect to a particular securities
transaction, and nonetheless recommends that the fund engage in that
transaction.
A bank or trust company authorized to conduct a trust business in Illinois or
a broker-dealer,
and any officer, director, or employee thereof, that advises or causes a
pension fund to make an investment or engages in a transaction not authorized
by this Code is subject to the penalty provisions of Article V of the Corporate
Fiduciary Act.
(Source: P.A. 90-507, eff. 8-22-97.)
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