1940 Investment Company Act

This act was driven by various flavors of corruption and inefficiency involving banks and investors. It forced the separation of investment banking activities (think: used company salesmen) from investing activities of mutual funds and other merchant banking beasts of the day.

Thanks to this act, fund companies offering investment products and funds to the public have to play by a bunch of rules when it comes to filings, fees, and revealing financial information. So you can stroll into a fund company's offices and know they won't be trying to pull the wool over your eyes... too much.