Regulatory Agencies in the US Securities Industry Quiz

Regulatory Agencies in the US Securities Industry

• The Securities and Exchange Commission (SEC) is a US government oversight agency responsible for ensuring compliance with securities laws and regulations.
• The SEC oversees legislation such as the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, and the Investment Company Act of 1940.
• Self-Regulatory Organizations (SROs) such as FINRA and securities exchanges establish industry procedures, compliance, and enforcement to protect investors.
• The New York Stock Exchange (NYSE) is the largest stock exchange in the world and has rigorous requirements for companies to be listed.
• The Chicago Board Options Exchange (CBOE) is the largest options exchange in the world and allows investors to trade in put and call options.
• FINRA is a not-for-profit organization that oversees broker-dealers in the US and protects the investing public by enforcing rules and providing education to investors.
• The Municipal Securities Regulatory Board (MSRB) writes and enforces rules for investment firms and banks selling municipal securities.
• Other US regulatory agencies include the United States Treasury, Internal Revenue Service (IRS), Federal Reserve, state regulators such as the North American Securities Administrators Association (NASAA), Federal Deposit Insurance Corporation (FDIC), and Securities Investor Protection Corporation (SIPC).
• The United States Treasury oversees the Internal Revenue Service, the United States Mint, and the Bureau of Engraving and Printing, and established the Financial Crimes Enforcement Network (FinCEN) to prevent money laundering.
• The IRS collects taxes and administers tax laws in the US.
• The Federal Reserve is the central bank of the US and regulates banks, maintains financial stability, and provides financial services to depository institutions.
• State regulators aim to protect the investing public from fraud and provide education and market transparency.