The Investment Company Act of 1940 is an act of Congress that regulates the formation of investment companies and their activities.
The Investment Company Act of 1940 is enforced and regulated by the Securities and Exchange Commission (SEC).
Companies seeking to avoid product liability and the requirements of the Act may be eligible for an exemption.
The law was signed into law by Roosevelt Roosevelt, who wanted to protect investors after the stock market crash of 1929 and the Great Depression that followed.
The law has gone through many changes over the decades as financial markets have evolved and become more complex.