What did the Investment Advisers Act of 1940 do?
The Investment Advisers Act (IAA) was passed in 1940 to monitor those who, for a fee, advise people, pension funds, and institutions on investment matters. The IAA mandated all persons and firms receiving compensation for serving as investment advisers to register with the SEC.
Who must register under the Investment Company Act of 1940?
In accordance with the Investment Company Act of 1940, investment companies must register with the SEC before they can offer their securities in the public market. The Act also lays out the steps an investment company is required to take during this registration process.
Who has to register as an investment company?
The SEC requires an investment adviser to register with the SEC if it has assets under management of at least $100 million or the investment adviser provides investment advice to an investment company registered under the Investment Company Act of 1940 (SEC Rule 203A-1).
What are reportable securities?
Reportable Securities means any Security other than “Exempted Securities,” which are direct obligations of the United States Government, bankers’ acceptances, bank certificates of deposit, commercial paper and high quality short-term debt instruments, including repurchase agreements, and shares issued by open-end …
What is the definition of a financial advisor under the Investment Advisers Act of 1940?
Section 202(a)(11) of the Act defines an investment adviser as any person or firm that: for compensation; is engaged in the business of; providing advice to others or issuing reports or analyses regarding securities. receiving the advice or another person may pay the compensation.
What assurance S does do the Investment Advisers Act of 1940 provide investors in dealing with people who offer investment advice?
Establishing Advisor Criteria The act stipulates that anyone providing advice or making a recommendation on securities (as opposed to another type of investment) is considered an advisor.
Who is subject to Investment Company Act?
The Investment Company Act applies to all investment companies, but exempts several types of investment companies from the act’s coverage. The most common exemptions are found in Sections 3(c)(1) and 3(c)(7) of the act and include hedge funds.
What qualifies as an investment company?
Generally, an “investment company” is a company (corporation, business trust, partnership, or limited liability company) that issues securities and is primarily engaged in the business of investing in securities. Closed-end funds (legally known as closed-end companies); UITs (legally known as unit investment trusts).
Who regulates investment companies?
Securities and Exchange Commission
8799 otherwise known as the Securities Regulation Code (“SRC”), the Commission is granted the authority to prescribe the regulation of investment companies, and to require them to register with the Securities and Exchange Commission (“Commission”) and to comply with certain standards including, among others, the …
What are non-reportable securities?
Non-Reportable Securities means: (i) direct obligations of the Government of the United States; (ii) money market instruments (including bankers’ acceptances, bank certificates of deposit, commercial paper and high quality short-term debt instruments, repurchase agreements); (iii) shares issued by money market funds; …
What is a non-reportable security?
Non-Reportable Security means a security which is not directly linked to a publicly listed company. Non-Reportable Securities do NOT require pre-trade approval.