Which federal agency regulates investment advisors across the United States?

The Securities and Exchange Commission (SEC) is the primary federal agency responsible for regulating investment advisors in the United States. This agency enforces securities laws to protect investors, maintain fair and efficient markets, and facilitate capital formation. Specifically, the SEC oversees the registration of investment advisors and requires them to adhere to fiduciary standards, which mandate that they act in the best interest of their clients.

The SEC also provides guidelines on various aspects of the investment advisory profession, including disclosure of conflicts of interest, fees, and investment strategies. This regulatory framework is designed to promote transparency and accountability among investment advisors, helping to safeguard investors' assets and provide them with necessary information to make informed decisions.

While other agencies like FINRA also play roles in the financial services industry, their focus is typically on broker-dealers and not directly on investment advisors. The CFTC primarily oversees commodity futures and options markets, and the Federal Reserve System is concerned with monetary policy, bank regulation, and overall financial system stability rather than the regulation of investment advisors. Thus, the role of the SEC in this context is crucial and well-defined, making it the correct answer.