Investment Advisers Act

Definition ∞ The Investment Advisers Act of 1940 is a United States federal law that regulates the activities of investment advisers. It mandates registration with the Securities and Exchange Commission for firms or individuals who provide investment advice for compensation. The act aims to protect investors by establishing fiduciary duties and requiring transparency regarding conflicts of interest. It sets standards for professional conduct.
Context ∞ News pertaining to the Investment Advisers Act frequently arises in discussions about financial regulation and investor protection, particularly as it relates to emerging asset classes. In the cryptocurrency space, there is ongoing debate about whether certain digital asset advisors fall under the act’s purview. Regulatory bodies are currently working to clarify how existing securities laws apply to the unique characteristics of crypto assets.