Investment Adviser Act of 1940

The Investment Advisers Act of 1940 is a federal law that regulates individuals and firms providing investment advice or managing client portfolios. Its goal is to protect investors by ensuring advisers are qualified, transparent, and act in their clients’ best interests. The Act requires advisers to register with the SEC or state authorities, disclose their fees and conflicts of interest, and follow certain standards of conduct. This oversight aims to promote trust, reduce fraud, and ensure fair and ethical practices within the investment advisory industry.