Under the Investment Company Act of 1940, investment companies engaged in interstate commerce must do what?

• A. Register with the SEC
• B. Register with state authorities
• C. File annual reports with FINRA
• D. File a 13D with the SEC

Answer: (A)

When an investment company operates across state lines, it must register with the Securities and Exchange Commission under the Investment Company Act of 1940. This federal registration provides the primary framework for disclosure, governance, and ongoing reporting, helping investors compare funds and trust that the fund is being regulated consistently nationwide. While state regulators may have some role in related securities activities, the Act targets registration at the federal level with the SEC to oversee interstate offerings and protect investors. Filing annual reports with FINRA is not required for investment companies under this act, and a Schedule 13D relates to large holders of other companies’ securities, not to investment companies themselves.