USA—The US regulators
USA—The US regulators

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • USA—The US regulators
  • Securities and Exchange Commission (SEC)
  • Commodity Futures Trading Commission (CFTC)
  • Impact of the SEC, CFTC and the laws they administer on the UK financial services landscape
  • Federal Reserve System
  • Federal Deposit Insurance Corporation (FDIC)
  • Department of the Treasury
  • National Credit Union Administration (NCUA)
  • Consumer Financial Protection Bureau (CFPB)
  • State Securities Regulators
  • more

Securities and Exchange Commission (SEC)

What is the SEC?

The SEC was created under the Securities and Exchange Act of 1934. This Act also amended and strengthened the Securities Act of 1933, which had been implemented in the wake of the stock market crash of 1929.

Both Acts were designed to restore investor confidence in US capital markets by providing investors and the markets with more reliable information and clear rules of honest dealing.

The SEC is an independent government agency tasked with overseeing US securities markets, enforcing securities law, and monitoring exchanges for stocks, options, and other securities.

In addition to the above Acts, the SEC administers a number of major laws that govern the securities industry in the US including (whether whole or in part) the:

  1. Trust Indenture Act of 1939, which applies to debt securities (eg debentures) offered for public sale

  2. Investment Company Act of 1940, which regulates the organisation of public listed companies that engage primarily in investing and trading in securities

  3. Investment Advisers Act of 1940, which regulates investment advisers

  4. Sarbanes–Oxley Act of 2002, which sets out a number of reforms to enhance corporate responsibility, enhance financial disclosures and combat corporate and accounting fraud; and

  5. Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd Frank), as amended by the Economic Growth, Regulatory Relief and Consumer