The intent behind the Investment Company Act of 1940, which regulates mutual funds, and the Investment Advisers Act of 1940, which regulates money managers, was to provide investors with the important information they needed in order to determine whether to invest with a given manager and to judge the ongoing performance of their managers.

FORBES: Hidden Crimes; Too Many Secrets: How Money Managers Hide Illegalities From Investors (August 1, 2000)