Robert Grohowski and Sean Collins
- Published in print:
- 2015
- Published Online:
- November 2015
- ISBN:
- 9780190207434
- eISBN:
- 9780190207465
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780190207434.003.0004
- Subject:
- Economics and Finance, Financial Economics
Mutual funds are subject to a comprehensive regulatory regime designed to protect fund shareholders. This chapter discusses the history, origins, and core principles of that regime, describing ways ...
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Mutual funds are subject to a comprehensive regulatory regime designed to protect fund shareholders. This chapter discusses the history, origins, and core principles of that regime, describing ways the structure, operation, and regulation of mutual funds protects shareholders. The chapter briefly introduces other similarly regulated pooled investment products available in the United States—CEFs, ETFs, and UITs—before returning to the legal, organizational, and operational structure of a mutual fund. The chapter summarizes the core principles of the Investment Company Act of 1940, the main federal securities law regulating mutual funds. These core principles relate to fund transparency, valuation, liquidity, leverage, diversification, custody, and conflicts of interest. While the Investment Company Act of 1940 is fundamentally about protecting fund shareholders, many of the Act’s key provisions also mitigate potential systemic risk, which has become an area of heightened regulatory focus.Less
Mutual funds are subject to a comprehensive regulatory regime designed to protect fund shareholders. This chapter discusses the history, origins, and core principles of that regime, describing ways the structure, operation, and regulation of mutual funds protects shareholders. The chapter briefly introduces other similarly regulated pooled investment products available in the United States—CEFs, ETFs, and UITs—before returning to the legal, organizational, and operational structure of a mutual fund. The chapter summarizes the core principles of the Investment Company Act of 1940, the main federal securities law regulating mutual funds. These core principles relate to fund transparency, valuation, liquidity, leverage, diversification, custody, and conflicts of interest. While the Investment Company Act of 1940 is fundamentally about protecting fund shareholders, many of the Act’s key provisions also mitigate potential systemic risk, which has become an area of heightened regulatory focus.
Annamaria Lusardi (ed.)
- Published in print:
- 2009
- Published Online:
- February 2013
- ISBN:
- 9780226497099
- eISBN:
- 9780226497105
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226497105.003.0001
- Subject:
- Economics and Finance, Public and Welfare
This book investigates the financial education programs that are in place, examines available investment products, and looks at the experiences of countries that have privatized the pension systems ...
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This book investigates the financial education programs that are in place, examines available investment products, and looks at the experiences of countries that have privatized the pension systems or experienced changes in the social security systems. It presents suggestions on how to enhance the effectiveness of these programs and products, thereby enabling the United States to make the transition to this new system more smoothly. The book shows that although the problems are many and the challenges daunting, programs can be designed to change saving behavior and overcome the saving slump now facing so many individuals. It also reveals that financial education programs can be effective and that increased literacy does result in better saving habits. Finally, an overview of the chapters included in the book is provided.Less
This book investigates the financial education programs that are in place, examines available investment products, and looks at the experiences of countries that have privatized the pension systems or experienced changes in the social security systems. It presents suggestions on how to enhance the effectiveness of these programs and products, thereby enabling the United States to make the transition to this new system more smoothly. The book shows that although the problems are many and the challenges daunting, programs can be designed to change saving behavior and overcome the saving slump now facing so many individuals. It also reveals that financial education programs can be effective and that increased literacy does result in better saving habits. Finally, an overview of the chapters included in the book is provided.
