Investment Company Institute


The Investment Company Institute is the leading global association of regulated funds, including mutual funds, exchange-traded funds, closed-end funds and unit investment trusts in the United States, and similar funds offered to investors in jurisdictions worldwide. ICI encourages adherence to high ethical standards, promotes public financial literacy of funds and investing, and advances the interests of investment funds and their shareholders, directors, and advisers.

History

Following the stock market crash of 1929 that presaged the Great Depression, Congress passed a series of acts related to securities and financial regulation. One of these, the Investment Company Act of 1940, clearly defined the responsibilities of investment companies. This same year, what would become ICI was established in New York as the National Committee of Investment Companies, an organization to aid in the administration of the act. It became the National Association of Investment Companies in 1941, and then the Investment Company Institute in 1961.

ICI Global

In 2011, ICI expanded internationally with the launch of the London-based ICI Global, which seeks to advance the common interests and promote public understanding of issues related to international funds, managers and investors, including both regulated U.S. and non-U.S. based funds publicly offered to investors worldwide. In 2013, ICI Global expanded into Asian markets with the opening of an office in Hong Kong.

Role in regulation and education

As an association made up of U.S. investment companies, including mutual funds, closed-end funds, exchange-traded funds, and unit investment trusts, ICI seeks to encourage adherence to high ethical standards among its members to gain public trust and confidence. It advocates for meaningful disclosure for investors from funds and provides investor education. It also provides data and commentary to the SEC to advise its regulatory process, and submits official comment letters and briefs in response to proposals around new financial regulations as well as legal decisions.
ICI’s research department includes economists and research analysts who collect and disseminate data on all types of registered investment companies; in 2016 they released more than 300 statistical reports examining various aspects of the industry, as well as 19 research and policy publications. In addition, ICI aims to promote the interests of directors, stockholders and investment counselors as well as the investment funds themselves. The organization has two continuing professional education programs, including a Continuing Professional Education program for Certified Public Accountants and a Continuing Legal Education program for attorneys.

Political role

ICI lobbies on behalf of investment companies, working closely with policymakers and regulators through outreach efforts involving economic and legal analysis, sometimes advocating directly to the public on issues important to its members. It also donates to federal candidates through its political action committee, ICI PAC, having donated $1,939,002 for the 2016 PAC cycle, with 34% going to Democrats and 66% to Republicans In 2016, ICI spent $4,962,719 on lobbying.

Membership

ICI membership is open to Securities and Exchange Commission-registered investment companies, their investment advisers, and underwriters, as well as investment managers sponsoring regulated funds offered to investors in jurisdictions worldwide. As of June 2018, ICI membership included 9,115 mutual funds, 562 closed-end funds, 1,643 exchange-traded funds, and as of December 2017, 3,580 unit investment trusts. ICI’s members manage total assets of US$21.9 trillion in the United States, serving more than 100 million US shareholders, and US$6.6 trillion in assets in other jurisdictions.

Leadership

The ICI is run by a board of governors, responsible for setting policies and overseeing the activities of the organization. The organization’s staff is based in its offices in Washington, DC, London, and Hong Kong.