Investment Advisers Act Key Provisions

Summary

This practice note discusses the definition of "investment adviser", related exclusions and exemptions from registration, and the consequences of registration under the Investment Advisers Act of 1940 (Advisers Act). The Advisers Act is the foundation upon which investment adviser regulation is built under United States securities laws. It authorizes the U.S. Securities and Exchange Commission (SEC) to create a system of federal regulation, governing registration, record keeping and certain other required or prescribed activities. Like other U.S. securities laws, the Advisers Act also prohibits fraud and bad faith dealing.