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6 unusual facts about Investment Company Act of 1940


Commodity market

Because they do not invest in securities, commodity ETFs are not regulated as investment companies under the Investment Company Act of 1940 in the United States, although their public offering is subject to SEC review and they need an SEC no-action letter under the Securities Exchange Act of 1934.

Exchange-traded fund

Under existing regulations, a new ETF must receive an order from the Securities and Exchange Commission, or SEC, giving it relief from provisions of the Investment Company Act of 1940 that would not otherwise allow the ETF structure.

Face-amount certificate company

Alongside with FAC, other company types that fall under the scope of the Investment Company Act of 1940 are Unit Investment Trusts and Management Companies.

A face-amount certificate company is an investment company which offers an investment certificate as defined by the Investment Company Act of 1940.

National Securities Markets Improvement Act of 1996

The National Securities Markets Improvement Act of 1996 is an amendment to United States federal securities laws in order to promote efficiency and capital formation in the financial markets, and to amend the Investment Company Act of 1940 to promote more efficient management of mutual funds, protect investors, and provide more effective and less burdensome regulation between states and the Federal Government.

The College of Health Care Professions

DARS is an approved provider of educational training services for the Investment Act and is approved by Texas Veterans Commission to train eligible veterans under Title 38.



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