From the July 2007 issue of Investment Advisor • Subscribe!

Depression-Era Financial Reforms

More On Legal & Compliance

from The Advisor's Professional Library
  • The Need for Thorough and Effective Policies and Procedures Whethere an advisor is SEC or state-registered, RIAs must revise their policies and procedures to address significant compliance problems occurring during the year, changes in business arrangements, and regulatory developments.
  • Pay-to-Play Rule Violating the pay-to-play rule can result in serious consequences, and RIAs should adopt robust policies and procedures to prevent and detect contributions made to influence the selection of the firm by a government entity.
Glass-Steagall Act of 1933: Prohibited most securities activities by commercial banks. Separated commercial banking from investment banking.

Securities Act of 1933: Regulated the issuance of securities by requiring the registration of new offerings and the full disclosure of financial information.

Securities and Exchange Act of 1934: Established the Securities and Exchange Commission with broad authority to regulate the securities industry, markets, and trading.

Public Utility Holding Company Act of 1935: Enacted to address fraud, stock manipulation, and other abuses that had led to the collapse of major utility companies.

Maloney Act of 1938: Authorized self-regulatory organizations to police the securities industry under the direction of the SEC. Led to 1939 designation of the National Association of Securities Dealers as a self-regulatory organization for the securities industry.

Investment Company Act of 1940: Established regulatory framework for mutual funds, also known as investment companies or investment trusts. Required registration with the SEC and full disclosure of relevant information.

Investment Advisers Act of 1940: Required registration of investment advisers with the SEC and imposed antifraud provisions on their activities.

Reprints Discuss this story
This is where the comments go.