What Is Investment Company Act of 1940?
Federal law regulating open-end and closed-end mutual funds and investment companies. Advisers to mutual funds must comply with this act's restrictions on compensation, conflicts, and sales practices even if the adviser itself is not registered as an investment company.
Investment Company Act of 1940 across 2 exams
Investment Company Act of 1940 appears on the following exams. Each defines it in the context candidates are tested on:
- Series 65
- Federal law regulating open-end and closed-end mutual funds and investment companies. Advisers to mutual funds must comply with this act's restrictions on compensation, conflicts, and sales practices even if the adviser itself is not registered as an investment company.
- Series 6
- The federal law that defines and regulates investment companies, classifying them and setting rules for their organization, operations, and disclosures. It is the primary statute governing mutual funds and variable products.