Commissioner Gallagher Gives a Speech that Covers the History of the Investment Advisers Act of 1940

October 23, 2012

SEC Commissioner Daniel Gallagher spoke at a NSCP conference in Washington, D.C. about the effectiveness of the existing regulatory standards of care that apply when brokers and investment advisers provide personalized investment advice to retail customers.
He stated that earlier this month, at SIFMA’s Market Structure Conference, he noted that in order to address the market structure issues the SEC currently faces, it needs to understand not just the present state of affairs, but also how things came to be the way they are today. Specifically, he discussed the importance of considering the evolution of law, regulation and market practices.  When considering how to harmonize the SEC’s rules imposing conduct requirements on brokers with the SEC’s rules that do the same for investment advisers, he noted that it is important to understand the reasons why Congress decided over 70 years ago to regulate investment advisers through the Investment Advisers Act of 1940, which was separate and distinct in time, form, and substance from the Securities Exchange Act of 1934 that established a regulatory framework for brokers and dealers.
Commissioner Gallagher then provided a detailed history of the Advisers Act.
Click here to access the speech.


Investment Advisers, Investment Companies