Mutual Fund

1. Investment Company Act of 1940

This Act regulates the organization of companies, including mutual funds, that
engage primarily in investing, reinvesting, and trading in securities, and whose own
securities are offered to the investing public. The regulation is designed to minimize
conflicts of interest that arise in these complex operations. The Act requires these
companies to disclose their financial condition and investment policies to investors
when stock is initially sold and, subsequently, on a regular basis. The focus of this
Act is on disclosure to the investing public of information about the fund and its
investment objectives, as well as on investment company structure and operations.
It is important to remember that the Act does not permit the SEC to directly
supervise the investment decisions or activities of these companies or judge the
merits of their investments.
2. Investment Advisers Act of 1940
This law regulates investment advisers. With certain exceptions, this Act requires
that firms or sole practitioners compensated for advising others about securities
investments must register with the SEC and conform to regulations designed to
protect investors. Since the Act was amended in 1996 and 2010, generally only
advisers who have at least $100 million of assets under management or advise a
registered investment company must register with the Commission. Other
investment advisers typically register with the state in which the investment adviser
maintains its principal place of business.
3. The Dodd-Frank Wall Street Reform and Consumer Protection Act is a law
that regulates the financial markets and protects consumers. Its components are
designed to prevent a repeat of the 2008 financial crisis. It is An Act to promote the
financial stability of the United States by improving accountability and transparency
in the financial system, to end "too big to fail", to protect the American taxpayer by
ending bailouts, to protect consumers from abusive financial services practices, and
for other purposes.

4. The 1933 Securities Act was the first major federal securities law passed following
the stock market crash of 1929. The law is also referred to as the Truth in Securities
Act, the Federal Securities Act, or the 1933 Act. It was enacted on May 27, 1933
during the Great Depression.

President Roosevelt stated that the law was aimed at correcting some of the
wrongdoings that led to the exploitation of the public. The wrongdoings
included insider trading, the sale of fraudulent securities, secretive and manipulative
trading to drive up share prices, and other acts that some financial institutions and
professional stock traders engaged in, to the disadvantage of ordinary individual
investors.

The primary goal of the 1933 Securities Act was simply to require securities issuers
to disclose all material information necessary for investors to be able to make
informed investment decisions on stocks.

5. Securities Exchange Act of 1934

With this Act, Congress created the Securities and Exchange Commission. The Act
empowers the SEC with broad authority over all aspects of the securities industry.
This includes the power to register, regulate, and oversee brokerage firms, transfer
agents, and clearing agencies as well as the nation's securities self regulatory
organizations (SROs). The various securities exchanges, such as the New York Stock
Exchange, the NASDAQ Stock Market, and the Chicago Board of Options are SROs.
The Financial Industry Regulatory Authority (FINRA) is also an SRO.

The Act also identifies and prohibits certain types of conduct in the markets and
provides the Commission with disciplinary powers over regulated entities and
persons associated with them.

The Act also empowers the SEC to require periodic reporting of information by
companies with publicly traded securities.

6. A mutual fund provides return on the amount invested while a Bank

deposits consist of money placed into banking institutions for safekeeping.
These deposits are made to deposit accounts such as savings accounts,
checking accounts, and money market accounts. When it comes to investing, risk
and reward go hand in hand. Stocks and bonds have the potential to produce
greater returns, so while there are some fees associated with mutual funds, the
returns are usually much higher than what you can expect from a savings account.