US Securities and Exchange Commission
Purpose: The
US Securities and Exchange Commission (SEC) is a regulatory body whose purpose is to “is
to protect investors, maintain fair, orderly, and efficient markets, and
facilitate capital formation.” It operates from the principal that: “all investors, whether large institutions or private individuals, should
have access to certain basic facts about an investment prior to buying it, and
so long as they hold it.”
Founded:
1929
Based:
SEC Headquarters, 450 Fifth Street, Washington, DC
Structure:
The SEC consists of five commissioners appointed by the US president, four divisions and 18 offices.
It also has 11 regional offices throughout the US. One of the commissioners is designated as chairman,
the SEC’s top executive. The commissioners meet to discuss issues appertaining
to federal securities laws, the amendment of existing rules, the proposal of new
rules, and the enforcement of rules and laws. These meetings are generally open
to the public.
Commissioners:
Chairman:
Christopher Cox
Paul S. Atkins, Roel C. Campos, Annette L. Nazareth, Kathleen L. Casey
Activities: Each of the SEC’s divisions are responsible for a different aspect of regulation:
Division of Corporation Finance: This oversees the corporate disclosure of important
information to the investing public. Corporations are required to comply with regulations regarding disclosure that must be made when stock is sold
and then on a continuing and periodic basis. This division routinely reviews the disclosure documents filed by companies.
Division of Market Regulation: This establishes and maintains standards for fair,
orderly and efficient markets. Its main task is to regulate the major securities market participants: broker-dealer firms, self-regulatory
organisations, transfer agents and securities information processors.
Division of Investment Management: This oversees and regulates the $15 trillion
investment management industry and administers the securities laws affecting investment companies and investment advisors.
Division of Enforcement: This investigates possible violations of securities laws,
recommends commission action when appropriate and negotiates settlements on behalf of the commission. |
