Investor Protection Act

DEFINITION of 'Investor Protection Act'

A component of the Wall Street Reform and Consumer Protection Act of 2009 designed to expand the powers of the Securities and Exchange Commission (SEC). The act established a whistleblower reward for reporting financial fraud, increased liability for aiding and abetting, doubled funding to the SEC over a five-year period, and more. The act was part of regulators' attempt to prevent some of the problems that caused the financial crisis of 2008-2009 from reoccuring in the future.

BREAKING DOWN 'Investor Protection Act'

The Wall Street Reform and Consumer Protection Act of 2009 was created to improve accountability and transparency in the financial system. It included a Consumer Financial Protection Agency that would regulate mortgages, auto loans and credit cards.