On the financial market, and especially on the securities market, there has always been the issue of regulation and compliance with the laws and rights of market participants. After all, you can come across many scammers and unscrupulous brokers. To help with issues involving intentional violations of rules and laws, special financial regulators have been created to help ensure security for funds, both brokers and traders. One of the most popular regulators is the US Securities and Exchange Commission (SEC). We talk about this regulator and the scope of its activities.
The US Securities and Exchange Commission (SEC) - the main regulatory company in the US securities market, monitors the operation of stock exchanges.
The Securities and Exchange Commission appeared in 1934, a year after the adoption of the Securities Act in the United States. At the time, these measures were taken to support the American economy, which was hit hard by the Great Depression. Nowadays, the main goal of the SEC is to establish the rules for registering securities and monitor their implementation, protect investors' rights and support them. Since brokers quite often provide traders with the opportunity to trade in securities, the need for the presence of such a regulator as the SEC should not be underestimated.
The main objectives of the SEC:
The SEC is one of the agencies of the US Federal Government. Since the US financial market is the leading economic market in the world which influences all markets, its regulators are also the subject of attention of traders all over the world. The SEC is one of the four largest regulators of the US financial market.
As a regulator, the SEC has a very wide sphere of influence in the economic sphere, has an independent judiciary which it participates in the most complex legal disputes in the market. Those tools and methods used by the SEC to resolve disputes and conflicts are the standard for international regulators.
SEC controls include:
Simply put, almost everything that is invested or deals with securities, one way or another, falls under the control of the SEC. To collect applications, the SEC uses a special EDGAR data collection system that works online and where anyone can file a complaint, for example, against an unscrupulous issuer or broker.
The SEC is organized quite simply and efficiently:
There are a number of unlawful actions that can be taken under investigation by the SEC.
As you can understand, thanks to the work of the SEC, the legislative framework in the financial market is maintained and improved which makes investor funds safer.
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