Major Federal Statutes Governing Investment Companies

Mutual funds and their principal service providers are regulated by the federal government to protect investors and maintain public confidence in the fund industry. The U.S. Securities and Exchange Commission (SEC) regulates funds according to the provisions of the Investment Company Act of 1940. Funds must also comply with the Securities  Act of 1933 when registering their shares publicly, and must provide notice filings to those states in which they intend to offer their shares. In addition, when fund sponsors sell fund shares to the public they are subject to regulation as broker-dealers under the Securities Exchange  Act of 1934. Furthermore, fund investment advisers are generally required to register under the Investment Ad visers Act of 1940.

Four Principal Securities Laws Governing Investment Companies

•  Investment Company Act of 1940
•  Securities Act of 1933
•  Securities Exchange Act of 1934
•  Investment Advisers Act of 1940

Other Prominent Federal Statutes Governing Investment Companies

• Internal Revenue Code of 1986
•  Securities Investor Protection Act
•  Public Utilities Holding Company Act