In a recent speech, SEC Commissioner Kara M. Stein argued that alternative mutual funds operate in a “gray area” of mutual fund regulation and called for increased examination of those funds and their operation within the restrictions of the Investment Company Act of 1940.  Using the 75th anniversary of the Investment Company Act as an occasion for her speech, Stein discussed the history of the regulatory framework for investment companies; argued that mutual funds and other registered companies have drifted from the principles of the Investment Company Act; and provided her thoughts on alternative mutual funds and retail investors.  This article summarizes Stein’s statements.  For additional insight from SEC officials, see “SEC Commissioner Speaks Out Against Trend Toward Strict Liability for Compliance Personnel,” Hedge Fund Law Report, Vol. 8, No. 25 (Jun. 25, 2015); and “Acting OCIE Director Discusses the Office’s Focus on Private Equity Managers and Emphasizes the Importance of Disclosure by Advisers,” Hedge Fund Law Report, Vol. 8, No. 21 (May 28, 2015).