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Finance a la shmoop. What is the Investment Advisors Act of 1940? [The question written on a blackboard]

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All right well a whole lot of acting going on in that 1940 there, best actor Robert [1940s black and white film]

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Donat best actress Vivien Leigh, best investment Act yeah this one well too

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many poor uneducated folks got taken in the market gyrations of the wild stock [Girl looking offended]

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market in the decade and changed before this act happened. So Congress then set

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out a whole bunch of standards under which Investment Advisers must act yeah [Documents from the act]

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see where we got that whole acting thing all right for example investment [The title of the act is highlighted]

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advisors with more than 25 million bucks under their care must register with the [Advisor next to a big sack of money]

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SEC making all of their actions quote aboveboard unquote and making it much

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harder for fast-talkin city slickers to abscond with the hard-earned savings of [Adviser taking money away from people]

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ma and pa farmer. Well the Act also outlined the structure under which

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advisors can charge fees and it created the then path-breaking notion that an

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investment advisor must put the interests of their client ahead of their [Advisor interests above client interests is swapped around]

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own personal interests and this was like a thing back then yeah it sounds

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shocking like you wouldn't need to explicitly state this in a modern polite

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normal society but in fact the wild world of that era while the notion that [People at a show in the 40s]

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you could not in fact actively steal your clients money so now is considered

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liberalism go figure... [Liberalism stamp]

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