how did the investment company act of 1940 impact financial regulation 
the act impacted the registration and requirements of many investment companies and made financial regulation tighter giving the sec more power to oversee the financial markets it created rules that protected investors and required investment companies to disclose certain information financial regulation became more robust under the act 1017the bottom linethe investment company act of 1940 was passed by fdr in the aftermath of the great depression after many individuals and families lost everything they had the purpose of the act was to provide the sec with the power to oversee investment companies and ensure they are acting according to law and in the best interest of their investors the purpose of the act was to protect investors at all costs as financial markets have evolved over the decades so has the investment company act though at its core its purpose remains the same 1819