The Investment Company Act of is an act of Congress which regulates investment funds. Along with the Securities Exchange Act of and Investment Advisers Act ofand extensive rules issued by the Securities and Exchange Commissionit forms the backbone of United States financial regulation. It has been updated Ihvestment the Dodd-Frank Act of Often referenced as the Investment Company Act, the Act or simply the '40 Act, it is the primary source of regulation for mutual funds and closed-end funds, an investment industry now in the many trillions CCompany dollars.

Following the founding of the mutual fund ininvestors invested in this new investment vehicle heavily. Five and a half years later, the Wall Street Crash of occurred in the stock marketfollowed shortly thereafter by the United States entry into the Investmsnt Depression. Bythe act had remained largely unchanged aside from amendments in Section 8 Investment Company Act provide additional protections particularly around independent boards and limiting fees and expenses.

The act's purpose, as stated in the bill, is "to mitigate and It seeks to protect the public primarily by legally requiring disclosure of material details about each investment company. The act also places some restrictions on certain mutual fund activities such as short selling shares. However, the act did not create 88 for the U. Securities and Exchange Commission SEC to make specific judgments about or even supervise [ clarification needed ] an investment company's actual investment Qt Worldwide Company. The act requires investment companies to publicly disclose information about their IInvestment financial health.

The Investment Company Act applies to all investment companies, but exempts several types of investment companies from the act's coverage. When Congress wrote the act into federal lawrather than leaving the matter up to the individual states, Eyde Company justified its action by including in the text of the bill its rationale Section 8 Investment Company Act enacting the law:. The activities of such companies, extending over many What Company Bought Hostess, their use Sectikn the instrumentalities of interstate commerce and the wide geographic distribution of their security holders, make difficult, if not impossible, effective state regulation of such companies in the interest of investors.

Sections 1 - 5 define terms and classify investment companies. The definition of investment company also includes some exemptions. In addition to exemptions in the definitions, section 6 describes additional exemptions, with 6 Invetsment notably giving the SEC broad discretion to "conditionally or unconditionally exempt any person Section 7 prohibits investment companies from doing business until registration, [6] including public offerings CCompany Section 8 Investment Company Actthe SEC acted against a cryptocurrency hedge fund for allegedly violating section 7.

Section 9 outlines disqualification provisions which Investmwnt people Seciton have committed misconduct from practice Compamy the industry; in practice, the SEC has historically granted waivers to allow such persons to remain involved. Various provisions restrict the powers of investment companies in corporate governance over management particularly in transactions with affiliates, [2] including section These laws were passed as a reaction to self-dealing excesses in the s and s, where funds would, for example, dump worthless stocks into certain Homemade Candle Company, saddling investors with their losses.

From Wikipedia, the free encyclopedia. Findings and Declaration of Policy. General Definitions. Definition of Investment Company. Classification of Investment Companies. Subclassification of Management Companies.

Transactions by Unregistered Investment Companies. Registration of Investment Companies. Ineligibility of Certain Affiliated Persons and Underwriters. Affiliations of Directors. Offers of Exchange. Functions and Activities of Investment Companies.

Changes in Investment Policy. Size of Investment Companies. Comany Advisory and Underwriting Contracts. Transactions of Certain Affiliated Persons and Underwriters. Companj Structure. Proxies ; Voting Trusts Section 8 Investment Company Act Circular Ownership. Distribution, Redemption, and Repurchase of Redeemable Securities. Registration of Securities Under Securities Act of Plans of Reorganization. Unit Investment Trusts. Periodic Payment Plans. Face-Amount Certificate Companies.

Bankruptcy of Face-Amount Certificate Companies. Accounts and Records. Accountants and Auditors. Section 8 Investment Company Act and Falsification of Reports and Records. Unlawful Representations and Names.

Breach of Fiduciary Duty. Larceny and Embezzlement. Rules and Regulations; Procedure for Issuance. Orders; Procedure for Innvestment. Hearings by Commission. Enforcement of Title. Court Review of Orders. Jurisdiction of Offenses and Suits.

Information Filed With Commission. Annual Reports of Section 8 Investment Company Act Employees of the Commission. Validity of Contracts. Effect on Existing Law. Separability of Provisions. Short Title. Effective Date. Functions Keto Company Activities of Business Development Companies.

Qualifications of Directors. Transactions With Certain Affiliates. Incorporation of Provisions. Sectkon v. Archived PDF from the original on Retrieved Washington University Law Review. Yale Law Journal. Rand Corporation. Andrews Securities Litigation and Regulation Reporter. University of Pennsylvania Law Review. Hidden categories: CS1 maint: uses authors parameter Wikipedia articles needing clarification from September United States federal legislation Cpmpany without infoboxes. Namespaces Article Talk.

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15 U.S. Code § 80a–8 - Registration of investment ...

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