22nd August 2018
Securities and Exchange Commission (SEC)
What is the
What is the Securities and Exchange Committee (SEC)?
The SEC is primarily concerned with monitoring the key participants in the securities industry: securities exchanges, brokers and dealers, investment advisors and mutual funds. It ensures that each discloses important market information to their investors and protect against financial crime including money laundering, terrorist financing, insider trading, and fraud. Coordinating across its five divisions, in its own words the SEC is responsible for:
- Interpreting and enforcing federal securities laws
- Issuing new – and amending existing – rules and regulations
- Overseeing the inspection of securities firms, brokers, investment advisers, and rating agencies
- Overseeing private regulatory organizations within the securities, accounting, and auditing fields
- Coordinating US securities regulations with federal, state, and foreign authorities
When firms are found to be in violation of securities laws, the SEC may recommend a federal investigation into their activities, before pursuing a prosecution through its Enforcement division.