The National Securities Markets Improvement Act of 1996
Encyclopedia
The National Securities Markets Improvement Act of 1996 is an amendment to United States federal securities laws in order to promote efficiency and capital formation in the financial markets, and to amend the Investment Company Act of 1940
to promote more efficient management of mutual funds, protect investors, and provide more effective and less burdensome regulation between states and the Federal Government.
The law made substantial changes to the competing systems of securities regulation at the state and federal level.
One of its provisions declares that any offering of a "covered security" (as defined within the act) is exempt from state registration and review.
Covered securities include the following:
Among the covered securities are any securities offered pursuant to S.E.C. Rule 506.
Investment Company Act of 1940
The Investment Company Act of 1940 is an act of Congress. It was passed as a United States Public Law on August 22, 1940, and is codified at through . Along with the Securities Exchange Act of 1934 and Investment Advisers Act of 1940, and extensive rules issued by the Securities and Exchange...
to promote more efficient management of mutual funds, protect investors, and provide more effective and less burdensome regulation between states and the Federal Government.
The law made substantial changes to the competing systems of securities regulation at the state and federal level.
One of its provisions declares that any offering of a "covered security" (as defined within the act) is exempt from state registration and review.
Covered securities include the following:
- Nationally traded securities - for example, securities listed or authorized for listing on the NYSE or included or qualified for inclusion in Nasdaq;
- Securities of a registered investment company (i.e., mutual funds); and
- Offers and sales of certain exempt securities
Among the covered securities are any securities offered pursuant to S.E.C. Rule 506.
See also
- Uniform Securities ActUniform Securities ActThe Uniform Securities Act is a model statute designed to guide each state in drafting its state securities law. It was created by the National Conference of Commissioners on Uniform State Laws ....
- Uniform Securities Agent State Law Examination (Series 63)