§ 80a-34. — Unlawful representations and names.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC80a-34]
TITLE 15--COMMERCE AND TRADE
CHAPTER 2D--INVESTMENT COMPANIES AND ADVISERS
SUBCHAPTER I--INVESTMENT COMPANIES
Sec. 80a-34. Unlawful representations and names
(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.
(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.
Section Referred to in Other Sections
This section is referred to in sections 80a-6, 80a-58 of this title.
