Investment Company Act of 1940


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Investment Company Act of 1940

Legislation that requires investment companies to register with the SEC and that outlines standards by which they must operate.

Investment Company Act of 1940

Legislation in the United States regulating investment companies such as mutual funds. The act placed restrictions on the activities in which investment companies are allowed to engage. For example, it forbade short selling in many circumstances. It required investment companies to file financial disclosure and set limits on the fees they are allowed to charge; it also required that investment companies with more than a certain number of investors register with the SEC. The Investment Company Act is enforced by the SEC. See also: Investment Advisers Act of 1940.

Investment Company Act of 1940.

Congress passed the Investment Company Act of 1940 to authorize the Securities and Exchange Commission (SEC) to regulate investment companies, though not to supervise or evaluate their investment decisions.

The Act requires that all mutual funds and exchange traded funds (ETFs) that invest in securities and sell their own shares to US investors must register with the SEC and meet a set of standards. These standards include regular public disclosure of their financial situation, their investment policies and objectives, and their fund portfolios as well as their pricing and fees.

The provisions of the Act are updated from time to time to reflect market developments, changing attitudes toward governance, and other issues.

References in periodicals archive ?
The Securities and Exchange Commission takes the position that an Individual Retirement Account fund must be treated differently from other bank common trust funds and must be registered under the Securities Act of 1933 and the Investment Company Act of 1940.
Shareholders will not have the protections associated with ownership of shares in an investment company registered under the Investment Company Act of 1940 or the protections afforded by the Commodity Exchange Act of 1936.
NASDAQ: ICOS) announced today that the Securities and Exchange Commission (SEC) has granted the company an exemption from the Investment Company Act of 1940.
Securities and Exchange Commission (SEC) permitting investment by investment companies in excess of the limitations under the Investment Company Act of 1940, as amended (1940 Act).
The Investment Company Act of 1940 has a policy to prevent investment companies like RHR from issuing stock that has unequal voting rights or contains inequitable or discriminatory provisions.
The directors of Electronic Media Central Corporation (OTCBB:EMEC) have approved an initial Marketing Plan to launch its initiative as a new Business Development Company ("BDC") under the Investment Company Act of 1940.
The fund is registered under the Investment Company Act of 1940 ('the 1940 Act'), which permits closed-end funds to borrow funds through the issuance of debt or preferred stock.
The plaintiffs alleged that American Century charged excessive management fees to three of its largest mutual funds in violation of Section 36(b) of the Investment Company Act of 1940.
Eaton Vance Credit Opportunities Fund (the fund) is a recently organized, diversified closed-end management investment company registered under the Investment Company Act of 1940 (the 1940 Act).
Tortoise North American Energy Corporation (the company) is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940 (the 1940 Act).
Nowak is a partner in the Philadelphia office of Pepper Hamilton LLP, where he concentrates his practice in securities law, particularly in representing investment management companies and other clients on matters arising under the Investment Company Act of 1940 and the related Investment Advisers Act of 1940.
Apollo Investment Corporation, or the Company, is a closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940.

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