Major Federal Statutes Governing Investment CompaniesMutual funds and their principal service providers are regulated by the federal government to protect investors and maintain public confidence in the fund industry. The U.S. Securities and Exchange Commission (SEC) regulates funds according to the provisions of the Investment Company Act of 1940. Funds must also comply with the Securities Act of 1933 when registering their shares publicly, and must provide notice filings to those states in which they intend to offer their shares. In addition, when fund sponsors sell fund shares to the public they are subject to regulation as broker-dealers under the Securities Exchange Act of 1934. Furthermore, fund investment advisers are generally required to register under the Investment Advisers Act of 1940. Four Principal Securities Laws Governing Investment CompaniesOther Prominent Federal Statutes Governing Investment Companies
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