Investment Company Act Law and Legal Definition
The Investment Company Act of 1940, regulates the conflicts of interest in investment companies and securities exchanges. The Act aims to mitigate and eliminate conditions that adversely affect the national public interest and the interest of investors.
The main features of the Act are:
1. the Act protects the public by legally requiring disclosure of material details;
2. the Act restricts the mutual fund activities.
Thus, the Act clearly explains the responsibilities and limitations placed on mutual fund companies that offer investment products to the public.
The Act is codified at 15 USCS § 80a-1