MUTUAL-FUNDS, INVESTMENT-ADVISERS, AND THE NATIONAL-SECURITIES-MARKETS-IMPROVEMENT-ACT

The Article presents an overview of the recently enacted National Secu rities Markets Improvement Act (NSMIA), as it affects investment compa nies and investment advisers. The NSMIA amended the Investment Company Act of 1940 and the Investment Advisers Act of 1940 in several import ant respects and, more significantly, reallocated and rationalized the regulatory responsibilities of federal and state regulators with resp ect to investment companies and investment advisers. The Article discu sses factors that led to the enactment of the legislation, explains it s various provisions, and notes interpretive questions that have arise n or are likely to arise under the NSMIA.