Investment Advisor Act

The Investment Advisers Act of 1940 is a U.S. law that regulates individuals and firms providing investment advice to the public. It requires advisors to register with the SEC or state authorities, follow ethical standards, and disclose important information about their services, fees, and any conflicts of interest. The goal is to protect investors from fraud, ensure transparency, and promote trust in the financial advice they receive. Essentially, it sets rules to ensure that those offering investment guidance act in their clients’ best interests and maintain integrity in their practices.