54 STAT.] 7 @rH CONG., 3D SESS. -CH. 68 - -AUG. 22 , 1940 any person or circumstances, shall be held invalid, the remainder of this title and the application of any such provision to person or cir- cumstances other than those as to which it is held invalid shall not be affected thereby. SHORT TITLE SEC. 52. This title may be cited as the "Investment Company Act of 1940". EFFECTIVE DATE SEC. 53. The effective date of the provisions of this title, so far as the same relate to face-amount certificates or to face-amount certificate companies, is January 1, 1941: Provided,however, That any such face- amount certificate company may register prior to said date, as pro- vided by section 8 of this title, and such registration shall not operate to change or affect said effective date as to any such company or any face-amount certificates issued by it. The effective date of provisions hereof, insofar as the same do not apply to face-amount certificates or face-amount certificate companies is November 1, 1940. Except as herein otherwise provided, every provision of this title shall take effect on November 1, 1940. TITLE II-INVESTMENT ADVISERS FINDINGS SEC. 201. Upon the basis of facts disclosed by the record and report of the Securities and Exchange Commission made pursuant to section 30 of the Public Utility Holding Company Act of 1935, and facts otherwise disclosed and ascertained, it is hereby found that investment advisers are of national concern, in that, among other things- (1) their advice, counsel, publications, writings, analyses, and reports are furnished and distributed, and their contracts, sub- scription agreements, and other arrangements with clients are negotiated and performed, by the use of the mails and means and instrumentalities of interstate commerce; (2) their advice, counsel, publications, writings, analyses, and reports customarily relate to the purchase and sale of securities traded on national securities exchanges and in interstate over- the-counter markets, securities issued by companies engaged in business in interstate commerce, and securities issued by national banks and member banks of the Federal Reserve System; and (3) the foregoing transactions occur in such volume as sub- stantially to affect interstate commerce, national securities exchanges, and other securities markets, the national banking system and the national economy. DEFINITIONS SEC. 202. (a) When used in this title, unless the context otherwise requires- ( ) "Assignment" includes any direct or indirect transfer or hypothecation of an investment advisory contract by the assignor or of a controlling block of the assignor's outstanding voting securi- ties by a security holder of the assignor; but if the investment adviser is a partnership, no assignment of an investment advisory contract shall be deemed to result from the death or withdrawal of a minority of the members of the investment adviser having only a minority interest in the business of the investment adviser, or from the admission to the investment adviser of one or more mem- 847 Short title. Effective dates. Proviso. Registration provi- sions, etc. Investment Ad- visers Act of 1940. Findings. 49 Stat. 837. 15 U.S. C., Supp.V, §79z-4 . Definitions. "Assignment."
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