The Investment Advisors Act of 1940 regulates investment advisors who are compensated for advising others about securities investments. Investment advisors must register with the Securities and Exchange Commission (SEC) and conform to the various regulations.1
Generally, only investment advisors who manage at least $100 million of regulatory assets under management (RAUM) must register with the SEC. Advisors with under $100 million of AUM are generally required to register within the state they operate but are not required to register with the SEC.
More information on the Investment Advisors Act of 1940 and the related Investment Company Act of 1940 can be found on the SEC website.