The Investment Company Act of 1940 regulates the organizational structure and day-to-day
operations of investment companies. The Act includes requirements regarding a fund’s capital
structure, the custody of its assets, its investment activities, and the duties of a fund’s board of
directors, among other things. The Securities Act of 1933 regulates the offering of a fund’s shares
and requires that prospective investors be provided with a prospectus. The Securities Exchange Act
of 1934 regulates secondary market activities in investment company shares and includes laws
governing the principal underwriters and brokers and dealers who sell investment company shares.
The Investment Advisers Act of 1940 regulates investment advisers and includes laws pertaining to
their registration and recordkeeping, custodial, and reporting responsibilities.
