This Act defines what constitutes an investment advisor, which (in its amended form) is anyone with at least $25 million of assets under management. The Act then goes on to require these advisers to register with the SEC, as well as conform to a series of rules that are designed to protect investors, such as maintaining their records in accordance with SEC rules, making those records accessible for SEC audits, and clearly identifying any financial interest they may have in transactions that they have executed for their clients.
Investment Advisors Act of 1940