When Wall Street and Washington cooperate it is news indeed. It may be long before another industry so heartily endorses a regulatory measure and before both houses of Congress pass a similar proposal without a single negative vote. The Investment Company Act of 1940 was approved August 22 and became effective on November 1 of that year. Its terms and provisions were worked out in conference between representatives of the industry and the Securities and Exchange Commission after the commission had completed an exhaustive study and investiga tion of investment companies.

Three statements concerning the act are worth recording: William Cole, Chairman of the House of Representatives Committee on Interstate and Foreign Commerce declared:

“The bill as drafted has the unqualified support and en dorsement of practically the entire investment company industry and of the Securities and Exchange Commission, the body by whom the provisions of the bill are to be administered. No opposition to the bill was expressed by any witness who appeared before the subcommittee of this committee which held hearings on the bill. Every wit ness representing the industry who appeared unqualifiedly endorsed the bill. Certified Financial Planner - Read More.