SEC: What You Need to Know?
What is SEC? The U.S. Securities and Exchange Commission (SEC) oversees the key participants in the securities world. Concerned with promoting disclosure of important market information, maintaining fair dealing, and protecting against fraud. Responsibilities include: Interpret and enforce federal securities laws Issue new rules and amend existing rules Oversee inspection of securities firms, brokers, investment advisers and ratings agencies Oversee private regulatory organizations in securities, accounting, auditing fields Coordinate U.S. securities regulation with federal, state, and foreign authorities SEC Organization: Division of Corporate Finance:Reviews documents required to be filed with the Commission Division of Trading: Assists in maintaining fair, orderly and efficient markets. Division of Investment Management: Maintains oversight of America’s $26T investment management industry Division of Enforcement: Recommends commencement of investigations of SEC law violations Division of Economic and Risk Analysis: Integrates robust economic analysis and data analytics Laws Governing SEC: Securities Act of 1933 Securities Exchange Act of 1934 Trust Indenture Act of 1939 Investment Company Act of 1940 Investment Advisers Act of 1940 Sarbanes-Oxley Act of 2002 Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 Jumpstart Our Business Startups Act of 2012 SEC Reports: 8k - A report of unscheduled material events or corporate changes at a company that could be of importance to the shareholders or SEC 10k - Comprehensive summary report of a company's performance. Submitted annually to the SEC 10Q - A comprehensive report of a company's performance that must be submitted quarterly by all public companies to SEC. In10-Q, firms are required to disclose relevant information regarding their financial position. 18K - Use to update the SEC and investors regarding the status of a domestically traded foreign security and its issuer. 20F - A form issued by the SEC that must be submitted by all "foreign private issuers" that have listed equity shares on exchanges in the U.S. SEC Investigations: Can be triggered in many ways Investigation is not the same as prosecution Investigations involve fact finding and are usually not public During an investigation, neither the staff nor the Commission makes any determination of wrongdoing Following investigation, SEC staff present findings to the Commission Commission can authorize the staff to file a case in federal court or bring an administrative action.
★
★
★
★
★
190 views • 7 slides
