Securities Regulation: Federal Regulation of Mutual Funds
The mutual fund industry is a trillion-dollar industry charged with the responsibility of reinvesting the investment dollars of both retail and institutional investors in a diverse array of financial instruments. This course covers in detail both the Investment Company Act of 1940, which governs both open-end and closed-end mutual funds (investment companies), and the Investment Advisers Act of 1940, which governs the financial management companies providing investment advice and other services to investment companies. Particular attention is paid to the structural aspects, investment objectives, marketing practices, and prospectus disclosure of investment companies. This course also covers issues relating to the independence and compensation of investment company directors, the governance rights of fund shareholders, the reasonableness of investment advisor fees and expenses, and insider trading and other illegal or questionable activities conducted by fund managers.
Prerequisite: Corporations (BUS210).