The Regulation of Mutual Fund Names and the Societal Role of Trust: An Exploration of Section 35(D) of the Investment Company Act
Larry D. Barnett
Widener University - School of Law
March 24, 2009
DePaul Business & Commercial Law Journal, Vol. 3, 2005
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.
Number of Pages in PDF File: 38
Keywords: mutual funds, investment companies, names, trust
JEL Classification: K23Accepted Paper Series
Date posted: March 25, 2009
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