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Title 15, Commerce and TradeRelease 119-110

§80a–34 Unlawful Representations and Names

Title 15 › CHAPTER 2D — INVESTMENT COMPANIES AND ADVISERS › SUBCHAPTER I — INVESTMENT COMPANIES › § 80a–34

Last updated Sep 22, 2026|Official source

Summary

People who sell or offer securities of a registered investment company must not say or suggest that the company or its securities are backed, sponsored, recommended, or approved by the United States or any U.S. agency or officer. They also must not say the investment is insured by the Federal Deposit Insurance Corporation (FDIC) or guaranteed by any bank or insured depository. If a fund is advised by or sold through a bank, sellers must clearly state that the investment is not FDIC‑insured or covered by any other government agency. The Securities and Exchange Commission (SEC) may make rules, after talking with federal banking agencies (see 12 U.S.C. 1813), about how this notice must be shown. Anyone who is registered under these securities laws must not imply the U.S. or its agencies have approved their skills or work. It is allowed to say a person or security is registered under this chapter, the Securities Act of 1933, or the Securities Exchange Act of 1934 if that statement is true and not misleading. Registered investment companies may not use names that the SEC finds materially deceptive or misleading. Insured depository institution: a bank or similar place that takes deposits. Appropriate Federal banking agency: the federal agency that supervises those institutions (see 12 U.S.C. 1813).

Full Legal Text

Title 15, §80a–34

Commerce and Trade, Source: USLM XML via OLRC

(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 (c) Statement of registration under securities provisions
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.
(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.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

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, which is classified generally to subchapter I (§ 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, which is classified principally to chapter 2B (§ 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.”

Statutory Notes and Related Subsidiaries

Effective Date

of 1999 AmendmentAmendment 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.

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. § 80a–34

Title 15, Commerce and Trade

Last Updated

Sep 22, 2026

Release point: 119-110