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
has been guaranteed, sponsored, recommended,
or approved by the United States, or any agency, instrumentality or
officer of the United States;
has been insured by the Federal Deposit Insurance
is guaranteed by or is otherwise an obligation
of any bank or insured depository institution.
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 3 of the Federal Deposit Insurance Act [12 USCS § 1813]), 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.
Definitions. The terms "insured depository institution"
and "appropriate Federal banking agency" have the same meanings as given
in section 3 of the Federal Deposit Insurance Act [12 USCS § 1813].
Unlawful representation of sponsorship by United States
or agency thereof. It shall be unlawful for any person registered under any
section of this title 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.
Statement of registration under securities provisions. No
provision of subsection (a) or (b) shall be construed to prohibit a statement
that a person or security is registered under this Act, the Securities Act
of 1933, or the Securities Exchange Act of 1934, if such statement is true
in fact and if the effect of such registration is not misrepresented.
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.
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