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.