The
Investment Advisers Act of 1940, codified at through , is a United States federal law that was created to regulate the actions of
investment advisersAn investment advisor is an individual or firm that advises clients on investment matters on a professional basis.They tend to fall into two distinct categories:...
(also spelled "advisors") as defined by the law.
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The
Investment Advisers Act of 1940, codified at through , is a United States federal law that was created to regulate the actions of
investment advisersAn investment advisor is an individual or firm that advises clients on investment matters on a professional basis.They tend to fall into two distinct categories:...
(also spelled "advisors") as defined by the law.
The law provides in part:
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- § 80b–1. Findings
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- Upon the basis of facts disclosed by the record and report of the Securities and Exchange Commission made pursuant to section 79z–4 of this title, and facts otherwise disclosed and ascertained, it is found that investment advisers are of national concern, in that, among other things—
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- their advice, counsel, publications, writings, analyses, and reports are furnished and distributed, and their contracts, subscription agreements, and other arrangements with clients are negotiated and performed, by the use of the mails and means and instrumentalities of interstate commerce;
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- their advice, counsel, publications, writings, analyses, and reports customarily relate to the purchase and sale of securities traded on national securities exchanges and in interstate over-the-counter markets, securities issued by companies engaged in business in interstate commerce, and securities issued by national banks and member banks of the Federal Reserve System
The Federal Reserve System is the central banking system of the United States. It was created in 1913 by the enactment of the Federal Reserve Act, largely as a response to a series of financial panics or bank runs, particularly a severe panic in 1907...
; and
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- the foregoing transactions occur in such volume as substantially to affect interstate commerce, national securities exchange
A stock exchange is a corporation or mutual organization which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital...
s, and other securities markets, the national bankingA bank is a financial institution licensed by a government. Its primary activities include borrowing and lending money.Many other financial activities were allowed over time. For example banks are important players in financial markets and offer financial services such as investment funds...
system and the national economyAn economic system is the system of production, distribution and consumption of goods and services of an economy. Alternatively, it is the set of principles and techniques by which problems of economics are addressed, such as the economic problem of scarcity through allocation of finite productive...
.
See also
- Investment Company Act of 1940
The Investment Company Act of 1940 is an act of Congress. It was passed as a United States Public Law on August 22, 1940, and is codified at through ....
, , et seq.
- Securities Act of 1933
Congress enacted the Securities Act of 1933 , in the aftermath of the stock market crash of 1929 and during the ensuing Great Depression. It is often referred to as the 1933 Act, the '33 Act, or the Securities Act...
- Securities Exchange Act of 1934
The Securities Exchange Act of 1934 is a law governing the secondary trading of securities in the United States of America. The Act, , codified at et seq., was a sweeping piece of legislation. The Act and related statutes form the basis of regulation of the financial markets and their...
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