Securities and Exchange Commission Functions and Investor Protection PDF

Securities and Exchange Commission Functions and Investor Protection Course Outcomes 1 CO1: Understanding 2 CO2: Recognizing the 3 CO3: Applying the SEC's Role SEC's Responsibilities Knowledge for Investor...

Securities and Exchange Commission Functions and Investor Protection Course Outcomes 1 CO1: Understanding 2 CO2: Recognizing the 3 CO3: Applying the SEC's Role SEC's Responsibilities Knowledge for Investor Protection This course will help you You'll learn about the SEC's gain a comprehensive primary responsibilities to This course empowers you understanding of the SEC's the investing public, to apply your knowledge of role, authority, and including protecting the SEC's role and functions in overseeing and investors from fraud, responsibilities to real-world regulating investment manipulation, and other scenarios. You'll be able to activities. You'll learn how illegal activities. You'll formulate proposed policies the SEC operates to understand how the SEC to strengthen financial maintain market integrity ensures a fair and institutions and expand and protect investors. transparent market for access to the investing investors. public. Role of the SEC Protecting Investors Maintaining Market Integrity The SEC's primary mission is to protect investors. The SEC plays a crucial role in ensuring that It accomplishes this by enforcing laws against financial markets operate fairly and efficiently. fraud, manipulation, and other illegal activities This involves regulating market participants, that could harm investors. This includes ensuring setting standards for financial reporting, and that companies provide accurate and timely overseeing the trading of securities. information to investors. SEC’s Authority Legal Authority Gives the SEC the power to enforce securities laws, regulate financial markets, and take 1 legal action against violations, ensuring market fairness and protecting investors. Enforcement Power The SEC has broad legal authority to enforce rules and regulations governing 2 securities markets. This includes the power to investigate potential violations, bring enforcement actions, and impose sanctions on violators. Financial Regulation The SEC has the authority to set and enforce regulations governing 3 the issuance and trading of securities, including stocks, bonds, and mutual funds. This includes setting standards for financial reporting and disclosures. SEC’s Functions Registration Disclosure Market Surveillance Enforcement The SEC regulates the The SEC requires The SEC monitors the The SEC has the authority registration of securities, companies to make trading of securities in to investigate and requiring companies to regular disclosures about the market, looking for prosecute any violations provide information about their financial any suspicious activity of securities laws. This their business and performance, including that could indicate fraud includes imposing fines, financial performance quarterly and annual or manipulation. This penalties, and other before they can sell reports. These disclosures includes monitoring sanctions on individuals securities to the public. are designed to ensure prices, trading volumes, or companies that that investors have and other indicators. engage in illegal activity. access to accurate and timely information. Indemnification and Responsibilities of the Commissioner Legal Accountability 1 The SEC Commissioner is responsible for ensuring that the SEC adheres to laws and regulations, protecting investors, and promoting market integrity. Indemnification The SEC commissioner is legally accountable for ensuring that the agency fulfills its 2 regulatory duties and protects investors. The commissioner must make decisions based on the best interests of the investing public. Regulatory Duties The commissioner is responsible for overseeing the day-to-day 3 operations of the SEC, including setting policy, making decisions on enforcement actions, and ensuring that the agency has the resources it needs to carry out its mission. Relevant Regulatory Agencies Federal Reserve Federal Deposit Insurance Corporation (FDIC) The Federal Reserve plays a crucial role in regulating banks and The FDIC insures deposits in banks financial institutions, ensuring their and thrift institutions, protecting stability and promoting economic depositors in case of bank failures. growth. It sets interest rates and It also regulates banks and monitors the overall health of the promotes financial stability through financial system. bank examinations and other supervisory activities. Commodity Futures Trading Commission (CFTC) The CFTC regulates commodity futures and options markets, ensuring fair and transparent trading. It also protects investors and market participants from fraud and manipulation in these markets. Conclusion 1 2 SEC’s Crucial Role Authority and Functions The Securities and Exchange Commission (SEC) plays a vital role in The SEC is empowered with broad legal authority to enforce protecting investors, ensuring market fairness, and maintaining the regulations governing securities markets, protecting investors from integrity of the financial system. It operates as a cornerstone of fraud and ensuring transparency. It's responsible for overseeing financial market regulation, safeguarding investors from fraud, registration, disclosure requirements, and market surveillance to manipulation, and other illegal activities. maintain market integrity. 3 4 Regulatory Agencies and Investor Protection Strengthening Financial Institutions Alongside the SEC, other financial regulatory agencies like the Federal By understanding the SEC’s responsibilities and its authority, we can Reserve, FDIC, and CFTC play vital roles in promoting fairness, develop informed proposals to further strengthen financial institutions transparency, and investor confidence. They work together to create and make them more accessible to the broader investing public, a healthy and stable financial ecosystem. supporting sustainable economic growth (aligned with SDG 8). Thank You Thank you for your time and interest in this course on SEC functions and investor protection. We hope this presentation has provided you with a valuable understanding of the SEC's vital role in safeguarding financial markets and protecting investors. Alquizar, Michael Tedd T. Caagoy, Natzylin R. Indonilla, Marifer R. Perido, Jaypher A. Sian, Rose Jim P. Suguilon, Regine T. Tamayo, John Simon G.