USA experience in the organization and legal regulation of investment funds

Abstract

The article analyzes the history of investment funds in the United States, one of the world’s financial centers, the emergence of legislation on investment funds and the content of regulations governing the activities of investment funds. The world’s first open-end investment fund was established in the United States and has been operating successfully to this day. The Law on Investment Companies, adopted in 1940, strongly protected the rights of investors and paved the way for the development of investment funds.  The first part of the article describes the history of the formation of US investment funds. Although U.S. investment funds have a 100-year history, their development dates back to the 1970s. The second part of the article describes the essence of investment companies, their necessary characteristics. U.S. law sets strict requirements for finding a particular company as an investment company. The third part of the article analyzes regulated and unregulated investment companies. Investment funds in the United States are diverse and serve the interests of all categories of investors. The concluding part of the article highlights the positive aspects of the US experience in establishing investment funds and the legal regulation of their activities and makes suggestions for improving national legislation.