CITE

    15 USC Sec. 80a-34                                          01/05/2009

EXPCITE

    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 2D - INVESTMENT COMPANIES AND ADVISERS
    SUBCHAPTER I - INVESTMENT COMPANIES

HEAD

    Sec. 80a-34. Unlawful representations and names

STATUTE

    (a) Misrepresentation of guarantees
      (1) In general
        It shall be unlawful for any person, issuing or selling any
      security of which a registered investment company is the issuer,
      to represent or imply in any manner whatsoever that such security
      or company -
          (A) has been guaranteed, sponsored, recommended, or approved
        by the United States, or any agency, instrumentality or officer
        of the United States;
          (B) has been insured by the Federal Deposit Insurance
        Corporation; or
          (C) is guaranteed by or is otherwise an obligation of any
        bank or insured depository institution.
      (2) Disclosures
        Any person issuing or selling the securities of a registered
      investment company that is advised by, or sold through, a bank
      shall prominently disclose that an investment in the company is
      not insured by the Federal Deposit Insurance Corporation or any
      other government agency. The Commission may, after consultation
      with and taking into consideration the views of the Federal
      banking agencies (as defined in section 1813 of title 12), adopt
      rules and regulations, and issue orders, consistent with the
      protection of investors, prescribing the manner in which the
      disclosure under this paragraph shall be provided.
      (3) Definitions
        The terms "insured depository institution" and "appropriate
      Federal banking agency" have the same meanings as given in
      section 1813 of title 12.
    (b) Unlawful representation of sponsorship by United States or
      agency thereof
      It shall be unlawful for any person registered under any section
    of this subchapter, 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 United States or any agency or officer thereof.
    (c) Statement of registration under securities provisions
      No provision of subsection (a) or (b) of this section shall be
    construed to prohibit a statement that a person or security is
    registered under this chapter, the Securities Act of 1933 [15
    U.S.C. 77a et seq.], or the Securities Exchange Act of 1934 [15
    U.S.C. 78a et seq.], if such statement is true in fact and if the
    effect of such registration is not misrepresented.
    (d) Deceptive or misleading names
      It shall be unlawful for any registered investment company to
    adopt as a part of the name or title of such company, or of any
    securities of which it is the issuer, any word or words that the
    Commission finds are materially deceptive or misleading. The
    Commission is authorized, by rule, regulation, or order, to define
    such names or titles as are materially deceptive or misleading.

SOURCE

    (Aug. 22, 1940, ch. 686, title I, Sec. 35, 54 Stat. 840; Pub. L.
    104-290, title II, Sec. 208, Oct. 11, 1996, 110 Stat. 3432; Pub. L.
    106-102, title II, Sec. 214, Nov. 12, 1999, 113 Stat. 1398.)

REFERENCES IN TEXT

      The Securities Act of 1933, referred to in subsec. (c), is act
    May 27, 1933, ch. 38, title I, 48 Stat. 74, as amended, which is
    classified generally to subchapter I (Sec. 77a et seq.) of chapter
    2A of this title. For complete classification of this Act to the
    Code, see section 77a of this title and Tables.
      The Securities Exchange Act of 1934, referred to in subsec. (c),
    is act June 6, 1934, ch. 404, 48 Stat. 881, as amended, which is
    classified generally to chapter 2B (Sec. 78a et seq.) of this
    title. For complete classification of this Act to the Code, see
    section 78a of this title and Tables.

AMENDMENTS

      1999 - Subsec. (a). Pub. L. 106-102 inserted heading and amended
    text of subsec. (a) generally. Prior to amendment, text read as
    follows: "It shall be unlawful for any person, in issuing or
    selling any security of which a registered investment company is
    the issuer, to represent or imply in any manner whatsoever that
    such security or company has been guaranteed, sponsored,
    recommended, or approved by the United States or any agency or
    officer thereof."
      1996 - Subsec. (d). Pub. L. 104-290 inserted heading and amended
    text generally. Prior to amendment, text read as follows: "It shall
    be unlawful for any registered investment company hereafter to
    adopt as a part of the name or title of such company, or of any
    security of which it is the issuer, any word or words which the
    Commission finds and by order declares to be deceptive or
    misleading. The Commission is authorized to bring an action in the
    proper district court of the United States or United States court
    of any Territory or other place subject to the jurisdiction of the
    United States alleging that the name or title of any registered
    investment company, or of any security which it has issued, is
    materially deceptive or misleading. If the court finds that the
    Commission's allegations in this respect, taking into consideration
    the history of the investment company and the length of time which
    it may have used any such name or title, are established, the court
    shall enjoin such investment company from continuing to use any
    such name or title."
                     EFFECTIVE DATE OF 1999 AMENDMENT
      Amendment by Pub. L. 106-102 effective 18 months after Nov. 12,
    1999, see section 225 of Pub. L. 106-102, set out as a note under
    section 77c of this title.

TRANSFER OF FUNCTIONS

      For transfer of functions of Securities and Exchange Commission,
    with certain exceptions, to Chairman of such Commission, see Reorg.
    Plan No. 10 of 1950, Secs. 1, 2, eff. May 24, 1950, 15 F.R. 3175,
    64 Stat. 1265, set out under section 78d of this title.
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