Investment Advisers Act of 1940

The Investment Advisers Act of 1940, codified at 15 U.S.C. § 80b-1 through 15 U.S.C. § 80b-21, is a United States federal law that was created to regulate the actions of investment advisers (also spelled "advisors") as defined by the law.

Overview

The law provides in part:

§ 80b–1. Findings

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—

(1) 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;

(2) 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; and

(3) the foregoing transactions occur in such volume as substantially to affect interstate commerce, national securities exchanges, and other securities markets, the national banking system and the national economy.15 U.S.C. § 80b-1

Contents

• Section 201 Findings
• Section 202(a) Definitions
• Section 202(b) Governments Excepted
• Section 203 Registration of Investment Advisers
• Section 203A State and Federal Responsibilities
• Section 204 Annual and Other Reports
• Section 204A Prevention of Misuse of Nonpublic Information
• Section 205 Investment Advisory Contracts
• Section 206 Prohibited Transactions by Investment Advisers
• Section 206A Exemptions
• Section 207 Material Misstatements
• Section 208 General Prohibitions
• Section 209 Enforcement of Title
• Section 210 Publicity
• Rules, Regulations and Orders (Section 211)
• Hearings (Section 212)
• Court Review of Orders (Section 213)
• Jurisdiction of Offenses and Suits (Section 214)
• Validity of Contracts (Section 215)
• Annual Reports of Commission (Section 216)
• Penalties (Section 217)
• Hiring and Leasing Authority of the Commission (Section 218)
• Separability of Provisions (Section 219)
• Short Title (Section 220)
• Effective Date (Section 221)
• State Regulation of Investment Advisers (Section 222)

See also

• Investment Company Act of 1940
• Securities Act of 1933
• Securities Exchange Act of 1934
• Dodd-Frank Act of 2010

External links

• Full text of the Investment Advisers Act of 1940
• Villanova Journal of Law & Investment Management a scholarly publication addressing the Investment Advisers Act of 1940.
• Introduction to the Federal Securities Laws