Articles on Stock markets

News, Research and Analysis

Help Center
Introduction
Investment Portfolios
Investment Terminology and Instruments
Technical Analysis and Trading
Cryptocurrencies and Blockchain
Retirement
Retirement Accounts
Personal FinancePersonal BankingPersonal DebtHome RelatedTax FormsSmall BusinessIncomeInvestmentsIRS Rules and PublicationsPersonal LifeMortgage
Corporate Basics

What is the Investment Advisors Act of 1940?

The IAA sought to regulate an industry that was deemed to be of public concern and within the Federal jurisdiction, though it did define some state-specific jurisdictions.

It defines investment advisors and made laws dealing with fraud, advertising, non-public client information, disclosures, handling of client funds, and so forth. The Investment Advisors Act of 1940 established definitions for the capacity in which an investment adviser and investment advice could be defined, and made rules concerning the standards by which advisors should operate.

It stipulated that all advisors must register with the SEC and be subject to the federal and state laws which pertained to the solicitation and proffering of financial advise. The scope of this act only covered securities and did not cover most insurance contracts or futures contracts.

Futures and the advisors who deal with them are regulated by a separate set of laws and agencies. The IAA established a system for annual reports in Form ADV, gave general prohibitions, exceptions, a system for hearings and arbitration, and defined penalties for wrongdoing.

The Investment Advisor Registration Depository (IARD) is maintained by FINRA, and is a publicly accessible database of all registered investment advisors.

What is the Investment Advisor Registration Depository (IARD)?
What is the Investment Company Act of 1940?

Keywords: securities, Securities and Exchange Commission (SEC), regulations, FINRA, Futures, SEC registration, financial institutions, Investment Advisers Act of 1940, IARD, Form ADV,