§ 80a–1. Findings and declaration of policy
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Upon the basis of facts disclosed by the record and reports of the Securities and Exchange Commission made pursuant to section 79z–4 1 of this title, and facts otherwise disclosed and ascertained, it is found that investment companies are affected with a national public interest in that, among other things— the securities issued by such companies, which constitute a substantial part of all securities publicly offered, are distributed, purchased, paid for, exchanged, transferred, redeemed, and repurchased by use of the mails and means and instrumentalities of interstate commerce, and in the case of the numerous companies which issue redeemable securities this process of distribution and redemption is continuous; the principal activities of such companies—investing, reinvesting, and trading in securities—are conducted by use of the mails and means and instrumentalities of interstate commerce, including the facilities of national securities exchanges, and constitute a substantial part of all transactions effected in the securities markets of the Nation; such companies customarily invest and trade in securities issued by, and may dominate and control or otherwise affect the policies and management of, companies engaged in business in interstate commerce; such companies are media for the investment in the national economy of a substantial part of the national savings and may have a vital effect upon the flow of such savings into the capital markets; and the activities of such companies, extending over many States, their use of the instrumentalities of interstate commerce and the wide geographic distribution of their security holders, make difficult, if not impossible, effective State regulation of such companies in the interest of investors.
Upon the basis of facts disclosed by the record and reports of the Securities and Exchange Commission made pursuant to section 79z–4 1 of this title, and facts otherwise disclosed and ascertained, it is declared that the national public interest and the interest of investors are adversely affected— when investors purchase, pay for, exchange, receive dividends upon, vote, refrain from voting, sell, or surrender securities issued by investment companies without adequate, accurate, and explicit information, fairly presented, concerning the character of such securities and the circumstances, policies, and financial responsibility of such companies and their management; when investment companies are organized, operated, managed, or their portfolio securities are selected, in the interest of directors, officers, investment advisers, depositors, or other affiliated persons thereof, in the interest of underwriters, brokers, or dealers, in the interest of special classes of their security holders, or in the interest of other investment companies or persons engaged in other lines of business, rather than in the interest of all classes of such companies’ security holders; when investment companies issue securities containing inequitable or discriminatory provisions, or fail to protect the preferences and privileges of the holders of their outstanding securities; when the control of investment companies is unduly concentrated through pyramiding or inequitable methods of control, or is inequitably distributed, or when investment companies are managed by irresponsible persons; when investment companies, in keeping their accounts, in maintaining reserves, and in computing their earnings and the asset value of their outstanding securities, employ unsound or misleading methods, or are not subjected to adequate independent scrutiny; when investment companies are reorganized, become inactive, or change the character of their business, or when the control or management thereof is transferred, without the consent of their security holders; when investment companies by excessive borrowing and the issuance of excessive amounts of senior securities increase unduly the speculative character of their junior securities; or when investment companies operate without adequate assets or reserves.
It is declared that the policy and purposes of this subchapter, in accordance with which the provisions of this subchapter shall be interpreted, are to mitigate and, so far as is feasible, to eliminate the conditions enumerated in this section which adversely affect the national public interest and the interest of investors. ( Aug. 22, 1940, ch. 686 , title I, § 1, 54 Stat. 789 .)
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U.S. Code
- § 78sRegistration, responsibilities, and oversight of self-regulatory organizations
- § 78fNational securities exchanges
- § 78cDefinitions and application
- § 1843Interests in nonbanking organizations
- § 1aDefinitions
- § 78mPeriodical and other reports
- § 1Tax imposed
- § 78oRegistration and regulation of brokers and dealers
- § 1002Definitions
- § 77bDefinitions; promotion of efficiency, competition, and capital formation
- § 77cClasses of securities under this subchapter
- § 5301Definitions
- § 5481Definitions
- § 1464Federal savings associations
- § 1844Administration
- § 77eProhibitions relating to interstate commerce and the mails
- § 78nProxies
- § 851Definition of regulated investment company
- § 77gInformation required in registration statement
- § 77rExemption from State regulation of securities offerings
- § 6Regulation of futures trading and foreign transactions
- § 12aRegistration of commodity dealers and associated persons; regulation of registered entities
- § 78uInvestigations and actions
- § 1851Prohibitions on proprietary trading and certain relationships with hedge funds and private equity funds
- § 6805Enforcement
- § 856Definition of real estate investment trust
- § 1831aActivities of insured State banks
- § 1101Coverage
- § 687Operation and regulation of companies
- § 852Taxation of regulated investment companies and their shareholders
- § 687bInvestigations and examinations; power to subpena and take oaths and affirmations; aid of courts; examiners; reports
- § 5336Beneficial ownership information reporting requirements
- § 432Report of officers and employees of labor organizations
- § 1820aExamination of investment companies
- § 7004Applicability to Federal and State governments
- § 265Expenses and interest relating to tax-exempt income
- § 7706Enforcement generally
- § 1625Securities laws exemption
- § 9675Applicability of securities laws
- § 3904Securities laws
CFR
- § 230.482Advertising by an investment company as satisfying requirements of section 10.
- § 230.163Exemption from section 5(c) of the Act for certain communications by or on behalf of well-known seasoned issuers.
- § 229.405(Item 405) Compliance with Section 16(a) of the Exchange Act.
- § 1.6049-4Return of information as to interest paid and original issue discount includible in gross income after December 31, 1982.
- § 1.6045-1Returns of information of brokers and barter exchanges.
- § 329.3Definitions.
- § 252.71Definitions.
- § 349.2Definitions.
- § 351.10Prohibition on acquiring or retaining an ownership interest in and having certain relationships with a covered fund.
- § 225.180Definitions.
- § 45.2Definitions.
- § 800.228Investment fund.
- § 200.30-19Delegation of authority to Director of the EDGAR Business Office.
- § 1.1012-1Basis of property.
- § 247.740Defined terms relating to the sweep accounts exception from the definition of "broker."
4 references not yet in our index
- 54 Stat. 789
- Pub. L. 109-58
- 119 Stat. 974
- 64 Stat. 1265
Citation graph
cites case law
§ 80a–1
Findings and declaration of policy
Fed. Reg.×1,656
C.F.R.×149
U.S.C.×58
Stat. Comp.×7
Stat.×3
Bills×2
Stat.54 Stat. 789
Pub. L.Pub. L. 109-58
Stat.119 Stat. 974
Stat.64 Stat. 1265
Cites 4Cited by 1,875 across 6 sources