PRIA Logo™
Take the PRIA Score
Title 15 — Commerce and TradeRelease 119-73

§78z Unlawful representations

Title 15 › Chapter CHAPTER 2B— - SECURITIES EXCHANGES › § 78z

Last updated Apr 6, 2026|Official source

Summary

You must not tell a prospective buyer or seller that the Commission or the Board of Governors of the Federal Reserve System has approved or vouched for a security, a transaction, or a filed report. If those agencies act or do nothing, that does not mean they checked and found the report true, and saying it does is illegal.

Full Legal Text

Title 15, §78z

Commerce and Trade — Source: USLM XML via OLRC

No action or failure to act by the Commission or the Board of Governors of the Federal Reserve System, in the administration of this chapter shall be construed to mean that the particular authority has in any way passed upon the merits of, or given approval to, any security or any transaction or transactions therein, nor shall such action or failure to act with regard to any statement or report filed with or examined by such authority pursuant to this chapter or rules and regulations thereunder, be deemed a finding by such authority that such statement or report is true and accurate on its face or that it is not false or misleading. It shall be unlawful to make, or cause to be made, to any prospective purchaser or seller of a security any representation that any such action or failure to act by any such authority is to be so construed or has such effect.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in text, was in the original “this title”. See

References in Text

note set out under section 78a of this title.

Amendments

1998—Pub. L. 105–353 substituted “Board of Governors of the Federal Reserve System” for “Federal Reserve Board”.

Executive Documents

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, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out under section 78d of this title.

Reference

Citations & Metadata

Citation

15 U.S.C. § 78z

Title 15 — Commerce and Trade

Last Updated

Apr 6, 2026

Release point: 119-73