{
  "slug": "investment-advisers-act-1940",
  "name": "Investment Advisers Act of 1940",
  "short_name": "Advisers Act",
  "aliases": [
    "IAA",
    "1940 Advisers Act"
  ],
  "jurisdiction": "US",
  "regulator": "SEC",
  "regulator_url": "https://www.sec.gov",
  "kind": "act",
  "effective_date": "1940-08-22",
  "summary": "U.S. federal statute that defines and regulates investment advisers, requiring registration with the SEC (or state equivalents) above prescribed AUM thresholds, imposing fiduciary duties, books-and-records requirements, custody rules, and the antifraud framework that governs hedge fund managers.",
  "scope": "Any person who, for compensation, advises others as to the value of securities or the advisability of investing in, purchasing, or selling securities.",
  "key_provisions": [
    {
      "section": "203",
      "title": "Registration of Investment Advisers",
      "summary": "Requires SEC registration of advisers above AUM thresholds (currently generally $110M+); state registration below."
    },
    {
      "section": "204",
      "title": "Books and Records",
      "summary": "Requires advisers to maintain prescribed books, records, and disclosures; subject to SEC examination."
    },
    {
      "section": "204A",
      "title": "Compliance Programs and Code of Ethics",
      "summary": "Requires written policies and procedures (Rule 206(4)-7) and a code of ethics (Rule 204A-1)."
    },
    {
      "section": "206",
      "title": "Antifraud",
      "summary": "Prohibits any device, scheme, or artifice to defraud; basis for SEC enforcement of fiduciary duty."
    },
    {
      "section": "206(4)-2",
      "title": "Custody Rule",
      "summary": "Imposes annual surprise audits, qualified custody, and notice requirements when an adviser has custody of client assets."
    }
  ],
  "thresholds": [
    {
      "name": "Federal vs state registration AUM threshold (regulatory AUM)",
      "value": 110000000,
      "currency": "USD"
    },
    {
      "name": "Mid-size adviser switch threshold",
      "value": 100000000,
      "currency": "USD"
    },
    {
      "name": "Exempt Reporting Adviser private fund threshold",
      "value": 150000000,
      "currency": "USD"
    }
  ],
  "applies_to": [
    "registered investment advisers",
    "exempt reporting advisers",
    "private fund managers"
  ],
  "filing_requirements": [
    {
      "form": "ADV",
      "frequency": "annual + material changes",
      "filer": "RIA",
      "trigger": "Initial registration and ongoing updates"
    },
    {
      "form": "PF",
      "frequency": "quarterly or annually depending on size",
      "filer": "RIA with $150M+ AUM in private funds",
      "trigger": "Above $150M private fund regulatory AUM"
    }
  ],
  "related_regulations": [
    "dodd-frank",
    "investment-company-act-1940",
    "securities-act-1933",
    "exchange-act-1934"
  ],
  "related_terms": [
    "registered-investment-adviser",
    "form-adv",
    "form-pf",
    "fiduciary-duty",
    "custody-rule"
  ],
  "official_text_url": "https://www.sec.gov/about/laws/iaa40.pdf",
  "history": "Enacted in response to the Investment Trust Study (1935-1939) following abuses uncovered after the 1929 crash. Significantly amended by Dodd-Frank (2010), which eliminated the 'private adviser' exemption that previously sheltered most hedge funds."
}