INVESTMENT ADVISERS ACT OF 1940 [PUBLIC LAW 768-76TH CONGRESS] [H.R. 10065] AS AMENDED DECEMBER 14, 1970, P.L. 91-547 [S. 2224] To provide for the registration and regulation of investment companies and investment advisers, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, Findings TITLE II-INVESTMENT ADVISERS SEC. 201. Upon the basis of facts disclosed by the record and report of the Securities and Exchange Commission made pursuant to section 30 of the Public Utility Holding Company Act of 1935, and facts otherwise disclosed and ascertained, it is hereby found that investment advisers are of national concern, in that, among other things (1) their advice, counsel, publications, writings, analyses, and reports are furnished and distributed, and their contracts, subscription agreements, and other arrangements with clients are negotiated and performed, by the use of the mails and means and instrumentalities of interstate commerce; (2) their advice, counsel, publications, writings, analyses, and reports customarily relate to the purchase and sale of securities traded on national securities exchanges and in interstate over-the-counter markets, securities issued by companies engaged in business in interstate commerce, and securities issued by national banks and members banks of the Federal Reserve System; and (3) the foregoing transactions occur in such volume as substantially to affect interstate commerce, national securities exchanges, and other securities markets, the national banking system and the national economy. Definitions SEC. 202. (a) When used in this title, unless the context otherwise requires (1) "Assignment" includes any direct or indirect transfer or hypothecation of an investment advisory contract by the assignor or of a controlling block of the assignor's outstanding voting securities by a security holder of the assignor; but if the investment adviser is a partnership, no assignment of an investment advisory contract shall be deemed to result from the death or withdrawal of a minority of the members of the investment adviser having only a minority interest in the business of the investment adviser, or from the admission to the investment adviser of one or more members who, after such admission, shall be only a minority of the members and shall have only a minority interest in the business. (2) "Bank" means (A) a banking institution organized under the laws of the United States, (B) a member bank of the Federal Reserve System, (C) any other banking institution or trust company, whether incorporated or not, doing business under the laws of any State or of the United States, a substantial portion of the business of which consists of receiving deposits or exercising fiduciary powers similar to those permitted to national banks under the authority of the Comptroller of the Currency,' and which is supervised and examined by State or Federal authority having supervision over banks, and which is not oper 1 Public Law 91-547, sec. 23(1), 84 Stat. 1430, substituted the words "under the authority of the Comptroller of the Currency" for "under section 11(k) of the Federal Reserve Act, as amended", eff. Dec. 14, 1970. |