Investment Advisers Act of 1940

The Investment Advisers Act of 1940 is a U.S. law that regulates individuals and firms that give advice about investments, such as stocks and bonds. Its main goal is to protect investors by ensuring that advisors are transparent, honest, and qualified. The law requires advisers to register with the SEC or state authorities, disclose important information about their practices and fees, and follow rules to prevent fraud and conflicts of interest. Overall, it promotes fair and ethical conduct in investment advising to help investors make informed decisions.