According to the Uniform Securities Act, it is illegal for an investment adviser (IA) to sell a security that it owns to an advisory client if:

The correct answer is [D] Without written disclosure, the IA acts as a broker for the client in purchasing the security.

Explanation:

Uniform Securities Act is designed to control security fraud on the state level, specifically by prohibiting individuals participating in the investment process, such as investment advisers (IA) from disclosing security information and making such actions illegal.

By requiring registration of all agents and initial public offerings themselves, offenders can be brought to court by the rule of this act.