(a) It is unlawful for any person to make or cause to be made, in any document filed with the department or in any proceeding under this act, any statement which is, at the time and in the light of the circumstances under which it is made, false or misleading in any material respect or, in connection with such statement, to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading. Where any person has failed to make reasonable inquiry as to the accuracy of the information being filed with the department, such person may not rely upon that failure as a defense to a violation of this section.

(b) It is unlawful for any person registered as a broker-dealer, agent, investment adviser or investment adviser representative under this act to represent or imply in any manner whatsoever that such person has been sponsored, recommended, or approved or that his abilities or qualifications have in any respect been passed upon by the department. Nothing in this section prohibits a statement (other than in a paid advertisement) that a person is registered under this act, if such statement is true in fact and if the effect of such registration is not misrepresented.