What is the Investment Company Act?

The Investment Company Act of 1940 is a federal law that regulates the activities and practices of investment companies in the United States. This act is regulated under the Securities and Exchange Commission (SEC). The Investment Company Act was enacted to protect investors from fraudulent and abusive practices in the investment management industry. This act sets forth the fiduciary duty of investment companies to their clients. This duty requires that investment companies must act in the best interest of their clients and must provide complete and accurate information regarding investments. The Investment Company Act also helps ensure that investment companies are meeting their obligations to shareholders by requiring that companies provide adequate disclosure of their financial activities. This disclosure must include information about the business, assets, liabilities, and financial performance. Additionally, the act also requires investment companies to register with the SEC and to provide annual reports to shareholders. In Oregon, the Investment Company Act is enforced by the Oregon Division of Finance and Corporate Securities. This division works to protect investor rights and to ensure companies are compliant with the Investment Company Act. Additionally, they provide education and resources to investors and investment companies to help them understand and abide by the act.

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What is the Investment Company Act?

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