Investment Company Act of 1940
E9481
The Investment Company Act of 1940 is a U.S. federal law that regulates the organization and activities of investment companies, such as mutual funds, to protect investors through disclosure, governance, and operational requirements.
Aliases (3)
Statements (62)
| Predicate | Object |
|---|---|
| instanceOf |
United States federal statute
→
securities regulation law → |
| administeredBy |
U.S. Securities and Exchange Commission
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|
| appliesTo |
publicly offered investment companies
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|
| citation |
15 U.S.C. § 80a-1 et seq.
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|
| contains |
Section 1 (Findings and declaration of policy)
→
Section 10 (Affiliations of directors and underwriters) → Section 12 (Functions and activities of investment companies) → Section 15 (Investment advisory and underwriting contracts) → Section 17 (Transactions of certain affiliated persons and underwriters) → Section 18 (Capital structure of investment companies) → Section 2 (Definitions) → Section 22 (Distribution, redemption, and repurchase of securities) → Section 3 (Definition of investment company) → Section 36 (Breach of fiduciary duty) → Section 38 (Rules, regulations, and orders) → Section 4 (Classification of investment companies) → Section 5 (Subclassification of management companies) → Section 8 (Registration of investment companies) → |
| country |
United States
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|
| dateEnacted |
1940-08-22
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|
| effectiveDate |
1940-11-01
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| enactedBy |
United States Congress
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| enforcementBy |
SEC Division of Investment Management
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|
| enforcementMechanism |
administrative proceedings
→
civil enforcement actions → |
| imposes |
asset coverage requirements for senior securities
→
limitations on concentration of investments → limitations on leverage by investment companies → requirements for shareholder voting on fundamental policies → restrictions on affiliated transactions → restrictions on custody of fund assets → restrictions on investment company names that may mislead investors → restrictions on multiple classes of shares → rules on distribution and underwriting of fund shares → rules on valuation of portfolio securities → |
| influenced |
global regulation of collective investment schemes
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| jurisdiction |
federal law of the United States
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| longTitle |
An Act to provide for the registration and regulation of investment companies and investment advisers, and for other purposes
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| partOf |
federal securities laws of the United States
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|
| policyGoal |
mitigation of conflicts of interest between fund managers and investors
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promotion of transparency in pooled investment vehicles → |
| presidentAtEnactment |
Franklin D. Roosevelt
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|
| primaryPurpose |
protection of investors
→
regulation of the organization and activities of investment companies → |
| provides |
exemptions for certain privately offered funds
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|
| regulates |
closed-end funds
→
exchange-traded funds → investment companies → mutual funds → unit investment trusts → |
| relatedTo |
Dodd–Frank Wall Street Reform and Consumer Protection Act
→
Investment Advisers Act of 1940 → Securities Act of 1933 → Securities Exchange Act of 1934 → |
| requires |
approval of advisory contracts by shareholders
→
disclosure of financial and operational information to investors → independent directors on investment company boards → periodic reporting to the SEC → registration of investment companies with the SEC → |
| shortTitle |
Investment Company Act of 1940
→
|
| signedBy |
Franklin D. Roosevelt
→
|
Referenced by (15)
| Subject (surface form when different) | Predicate |
|---|---|
|
Commerce and Trade
("Investment Company Act of 1940 (codified sections)")
→
Investment Company Act of 1940 ("Section 18 (Capital structure of investment companies)") → Title 15 of the United States Code ("Investment Company Act of 1940 provisions") → |
contains |
|
National Securities Markets Improvement Act of 1996
→
Securities Act Amendments of 1964 → |
amends |
|
Division of Enforcement
→
Division of Enforcement of the SEC → |
legalAuthority |
|
Division of Investment Management
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|
appliesLaw |
|
U.S. Congress
→
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enactsLaw |
|
Securities and Exchange Commission
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|
enforces |
|
Office of Structured Finance
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governedBy |
|
Office of Compliance Inspections and Examinations
→
|
legalBasis |
|
United States federal securities markets
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legalFramework |
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Investment Advisers Act of 1940
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relatedTo |
|
Investment Company Act of 1940
→
|
shortTitle |