What type of funds are banks prohibited from advertising?

Banks are prohibited from advertising common trust funds because these funds are designed for the collective investment of trust assets and are governed by specific regulations, including those established by the Office of the Comptroller of the Currency (OCC). Common trust funds are not considered mutual funds and are primarily intended for the benefit of a specific group of trust beneficiaries.

The restrictions on advertising stem from the nature of common trust funds, which are not subject to the same marketing rules as mutual funds. Since these funds involve the investment of specific trust money and are often private in nature, advertising them could mislead the public or imply broader investment opportunities that are not available.

In contrast, other fund types like collective investment funds, closed-end mutual funds, and open-end mutual funds can be marketed and advertised, as they have different regulatory frameworks and investor bases. Understanding this distinction is critical for compliance with financial regulations and for ensuring transparent communication to potential investors.