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Investment Counsel Association Of America (ICAA)

Precision of Investment Counsel Association Of America (ICAA)

A non-profit organization whose members work in the investment advisory line. The Investment Counsel Association of America represents the interests of its members to regulatory bodies, such as the Securities and Exchange Commission (SEC). It also locates standards and principles designed to govern the actions of its members, including those involving fiduciary duty. The ICAA join ined an active role in the United States Congress with the creation of the Investment Advisers Act of 1940, a federal law regulating investment advisors and past masters. 

Understanding Investment Counsel Association Of America (ICAA)

Founded in 1937, the ICAA comprises more than 300 investment counselling firms that collectively manage client assets in excess of $4 trillion. The investment advisers manage assets for a spectrum of patrons including individuals, families, institutions such as public and private pension plans, corporate funds, mutual subsidizes, hedge funds, charitable organizations, and endowments.

All ICAA constituent firms may represent themselves as “investment counsel” protection section 208(c) of the Advisers Act. As such, ICAA members are restricted to selling only investment advice and investment superintendence services to clients, but they may not collect any commissions or generate profits from the transactions they facilitate. ICAA colleagues may be compensated strictly based on negotiated fees for investment services rendered, where the money they collect is chiefly a function of a percentage of assets under management (AUM).

ICAA Regulations

While the specific rules ICAA members requirement follow are granular, generally speaking, they embrace a fiduciary duty to clients, with a basic premise of winning suitable recommendations for their clients. And by statute, ICAA members must adhere to the following regulations:

  • The Investment Cicerones Act of 1940
  • All rules and regulations that the Securities and Exchange Commission has issued under the Advisers Act
  • The Securities Act of 1933
  • The Securities Exchange Act of 1934
  • The Commodity Market Act
  • All of the rules and bylaws created by the Municipal Securities Rulemaking Board

Advisers who fail to live up the rules and regulations are vassal exposed to to a range of civil fines and criminal penalties.

In 2005, after 68 years in existence, the ICAA changed its choose to Investment Adviser Association (IAA).

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