Investment Advisers Act of 1940

E9879

The Investment Advisers Act of 1940 is a U.S. federal law that regulates investment advisers by imposing registration, fiduciary, disclosure, and anti-fraud obligations to protect investors.


Statements (54)
Predicate Object
instanceOf United States federal statute
securities regulation law
administeredBy U.S. Securities and Exchange Commission
amendedBy Dodd–Frank Wall Street Reform and Consumer Protection Act
National Securities Markets Improvement Act of 1996
appliesTo advisers engaged in interstate commerce
advisers to registered investment companies
codifiedIn Title 15 of the United States Code
containsSection Section 202
Section 203
Section 204
Section 205
Section 206
Section 208
country United States of America
definesTerm federal covered adviser
investment adviser
effectiveDate 1940
enactedBy United States Congress
enforcementBy Division of Enforcement of the SEC
establishes Form ADV as primary registration document for advisers
federal fiduciary standard for investment advisers
exempts certain advisers whose clients are only insurance companies
certain family offices
certain intrastate advisers
focusesOn regulation of advisory relationships between advisers and clients
imposesObligation anti-fraud provisions
disclosure obligations for investment advisers
fiduciary duty on investment advisers
registration requirements for investment advisers
jurisdiction United States
keyProvision Section 203 registration of investment advisers
Section 204 recordkeeping and reporting requirements
Section 205 restrictions on performance-based fees
Section 206 anti-fraud provisions
primaryPurpose protect investors
regulate investment advisers
prohibits fraud by investment advisers
manipulative or deceptive practices by investment advisers
omission of material facts by investment advisers
untrue statements of material fact by investment advisers
regulates investment adviser representatives
investment advisers
regulatesActivity advising others about securities
providing investment advice for compensation
relatedTo Investment Company Act of 1940
Securities Act of 1933
Securities Exchange Act of 1934
requires delivery of Form ADV brochure to clients
maintenance of books and records by investment advisers
registration with the SEC for certain investment advisers
shortTitle Investment Advisers Act
signedBy Franklin D. Roosevelt
yearEnacted 1940


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