Question 1

Match the following pieces of legislation with the function achieved by each regulation as stated in the question.
-Sets rules to prevent conflicts of interest,fraud,and excessive fees or charges for fund shares.

Accepted Answer

The Investment Company Act of 1940 sets rules to prevent conflicts of interest, fraud, and excessive fees or charges for fund shares. This law requires investment companies to register with the SEC and disclose their financial condition and investment policies to investors.

Question 2

Match the following pieces of legislation with the function achieved by each regulation as stated in the question.
-Requires a mutual fund to file a registration statement with the SEC.

Accepted Answer

The answer of Match the following pieces of legislation with...

Question 3

Match the following pieces of legislation with the function achieved by each regulation as stated in the question.
-Requires a mutual fund to set rules and procedures regarding the fund's prospectus sent to investors.

Accepted Answer

The answer of Match the following pieces of legislation with...

Question 4

Match the following pieces of legislation with the function achieved by each regulation as stated in the question.
-Regulates the activities of mutual fund advisors.

Accepted Answer

The Investment Advisers Act of 1940 regulates the activities of investment advisers, including mutual fund advisors, in order to protect investors from fraud or misrepresentation and to ensure that investment advisers are acting in the best interest of their clients.

Other legislation in the list serves different functions: 
- Securities Act of 1933 requires companies to disclose information to investors, with the goal of ensuring that investors have all the information they need to make informed investment decisions. 
- Securities Exchange Act of 1934 governs the trading of securities and requires publicly traded companies to make regular disclosures to investors. 
- Investment Company Act of 1940 regulates mutual funds and other investment companies, with a focus on preventing conflicts of interest between the fund and its investors. 
- Insider Trading and Securities Fraud Enforcement Act of 1988 increases penalties for insider trading and securities fraud. 
- Market Reform Act of 1990 addresses issues with stock market volatility and circuit breakers. 
- National Securities Markets Improvements Act of 1996 preempts state securities laws and streamlines the registration process for securities offerings.

Question 5

Match the following pieces of legislation with the function achieved by each regulation as stated in the question.
-Exempts mutual fund sellers from oversight by state securities regulators.

Accepted Answer

The National Securities Markets Improvement Act of 1996 (NSMIA) preempts state securities regulations on national securities exchanges and exempts mutual fund sellers from oversight by state securities regulators.

Question 6

Match the following pieces of legislation with the function achieved by each regulation as stated in the question.
-Provides for the supervision of mutual fund share distributions.

Accepted Answer

The answer of Match the following pieces of legislation with...

Question 7

Match the following pieces of legislation with the function achieved by each regulation as stated in the question.
-Requires a mutual fund to furnish full and accurate information on all financial and corporate matters to prospective fund purchasers.

Accepted Answer

The answer of Match the following pieces of legislation with...

Question 8

Match the following pieces of legislation with the function achieved by each regulation as stated in the question.
-Makes the purchase and sale of mutual fund shares subject to various antifraud provisions.

Accepted Answer

The answer of Match the following pieces of legislation with...

Question 9

Match the following pieces of legislation with the function achieved by each regulation as stated in the question.
-Allows the SEC to introduce circuit breakers to halt trading on exchanges.

Accepted Answer

The Market Reform Act of 1990 allows the SEC to introduce circuit breakers to halt trading on exchanges.

Quiz 5: Financial Services: Mutual Fund and Hedge Fund Companies

Match the following pieces of legislation with the function achieved by each regulation as stated in the question. -Sets rules to prevent conflicts of interest,fraud,and excessive fees or charges for fund shares.

Match the following pieces of legislation with the function achieved by each regulation as stated in the question. -Requires a mutual fund to file a registration statement with the SEC.

Match the following pieces of legislation with the function achieved by each regulation as stated in the question. -Requires a mutual fund to set rules and procedures regarding the fund's prospectus sent to investors.

Match the following pieces of legislation with the function achieved by each regulation as stated in the question. -Regulates the activities of mutual fund advisors.

Match the following pieces of legislation with the function achieved by each regulation as stated in the question. -Exempts mutual fund sellers from oversight by state securities regulators.

Match the following pieces of legislation with the function achieved by each regulation as stated in the question. -Provides for the supervision of mutual fund share distributions.

Match the following pieces of legislation with the function achieved by each regulation as stated in the question. -Requires a mutual fund to furnish full and accurate information on all financial and corporate matters to prospective fund purchasers.

Match the following pieces of legislation with the function achieved by each regulation as stated in the question. -Makes the purchase and sale of mutual fund shares subject to various antifraud provisions.

Match the following pieces of legislation with the function achieved by each regulation as stated in the question. -Allows the SEC to introduce circuit breakers to halt trading on exchanges.