Section 35(d) of the Investment Company Act authorizes the Securities and Exchange Commission to regulate the names of investment companies that are registered with the Commission, and bars registered investment companies -- the vast majority of which are mutual funds -- from using names that contain words “that the Commission finds are materially deceptive or misleading.” The article relates the regulation of investment company names to the importance to society of trust. Pertinent case law under section 35(d) is reviewed, and Rule 35d-1 is discussed. The article also considers fund names that are not covered either by section 35(d) or by Rule 35d-1 -- specifically, names that are “cute” or “catchy” -- and suggests a possible revision of the section. The suggested revision employs a behavioral science, value-neutral approach to fund names rather than the present value-based approach.
- mutual funds,
- investment companies
Available at: http://works.bepress.com/larry_barnett/10/