
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 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) Unlawful representation of guarantee by United States or agency 
        thereof

    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.

(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.)

                       Amendment of Subsection (a)

        Pub. L. 106-102, title II, Secs. 214, 225, Nov. 12, 1999, 113 
    Stat. 1398, 1402, provided that, effective 18 months after Nov. 12, 
    1999, subsection (a) of this section is amended to read as follows:

(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.

                       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

    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.
