Investment Advisers Act of 1940


Also found in: Wikipedia.

Investment Advisers Act

Legislation in the United States defining an investment adviser as a person who provides professional advice on how to manage investments or makes investments on behalf of a client. Under amendments to the Advisers Act, investment advisers with more than $25 million under management are required to register with the SEC. The act defines the liability of investment advisers and provides guidelines on the fees and commissions they may collect. Additionally, the Act provides certain anti-fraud provisions protecting investors from predatory advisers, even those not registered with the SEC.

Investment Advisers Act of 1940

A federal act that defines what an investment adviser is, requires such advisors to register with the SEC, and sets standards for advertising, disclosure, fees, liability, and record keeping. The Act was passed to protect investors. Also called Advisers Act.
References in periodicals archive ?
Alcentra, NY, LLC, a registered investment adviser under the Investment Advisers Act of 1940, together with Alcentra Limited is a sub-investment grade credit asset manager focusing on the US and European markets.
Thus, firms and their representatives that act as broker/dealers (B/Ds) under the Exchange Act of 1934 must determine whether they are acting as fiduciaries under ERISA even if not acting as advisers under the Investment Advisers Act of 1940.
Investment Advisers Legal and Compliance Guide, Third Edition, reflects the most current discussions around legal and compliance topics for investment advisers, including fundamental issues arising under the Investment Advisers Act of 1940. The resource covers a broad range of topics from marketing to portfolio management to inspections and enforcement.
Specifically, these actions include new Regulation Best Interest, the new Form CRS Relationship Summary, and two separate interpretations under the Investment Advisers Act of 1940. Chairman Clayton previously announced that these videos, along with investor events, would be part of a new campaign designed to help retail investors understand key differences between broker-dealers and investment advisers, and to help them decide whether working with one of those types of financial professionals is right for them.
Specifically, these actions include new Regulation Best Interest, the new Form CRS Relationship Summary, and two separate interpretations under the Investment Advisers Act of 1940. Chairman Clayton previously announced0x20that events such as these would be part of a new campaign designed to help retail investors understand key differences between broker-dealers and investment advisers, and to help them decide whether working with one of those types of financial professionals is right for them.
The agency settled on a disclosure-based approach to policing conflicts of interest in the retail investment marketplace; the securities regulator also published an updated interpretation of key sections of the Investment Advisers Act of 1940.
The SEC's order finds that LCA, Laplanche, and Dolan each violated the antifraud provisions of the Investment Advisers Act of 1940. To settle the SEC's charges, LCA, Laplanche and Dolan agreed to pay penalties of $4M, $200,000, and $65,000, respectively.
Section 206(4) of the Investment Advisers Act of 1940 (the Act) makes it unlawful for RIAs to engage in any activity that is fraudulent, deceptive or manipulative.
In its no-action letter, the SEC's Division of Investment Management provided relief for 30 months from MiFID II's implementation date under the Investment Advisers Act of 1940 to permit a broker-dealer to receive payments in hard dollars or through MiFID-governed research payment accounts from MiFID-affected clients without being considered an investment advisor.
Capital United is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940.
During his tenure at the SEC, he worked on several compliance inspection projects involving compliance examinations of registered investment advisers to ensure compliance with the Investment Advisers Act of 1940, the Investment Company Act of 1940, the Securities Act of 1933, and the Securities Exchange Act of 1934.
Any person whose sole activity as a professional fiduciary is as a broker-dealer, broker-dealer agent, investment adviser or investment adviser representative registered and regulated under the Corporate Securities Law of 1968, the Investment Advisers Act of 1940 or the Securities Exchange Act of 1934, or involves serving as a trustee to a company regulated by the SEC under the Investment Company Act of 1940.

Full browser ?