SEC targets ‘protected’ and ‘guaranteed’ fund names
After criticising the use of the term “principal protected” in structured notes, the SEC turns to ETFs and mutual funds that promise protection from loss in their names
The US Securities and Exchange Commission (SEC) has said that funds that use the words "protected" or "guaranteed" in their names should consider removing the terms, saying that in the absence of qualifying language they can imply a level of safety or protection beyond what the funds can offer. The guidance comes after the regulator asked several funds to qualify or remove the terms from their names in comments to registration statements filed by the funds.
The SEC says investors can be misled
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