Securities & Exchange Commission – United States

The Securities and Exchange Commission (SEC) is the principal regulatory body overseeing the securities industry in the United States. Established in 1934 as a response to the stock market crash of 1929, the SEC’s mission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.

Key Functions and Responsibilities

• Regulatory Oversight: The SEC enforces federal securities laws to regulate the securities industry, including the nation’s stock and options exchanges. It oversees securities brokers and dealers, investment advisors, and mutual funds to promote fair dealing and protect against fraud.
• Investor Protection: Protecting investors is a core mission of the SEC. It ensures that public companies disclose meaningful financial and other information to the public, providing a common pool of knowledge for all investors to use to judge for themselves if a company’s securities are a good investment.
• Market Integrity: The SEC works to maintain orderly and efficient markets by enforcing laws against market manipulation and insider trading. It ensures that all securities markets operate in a manner that promotes the efficient allocation of capital.

Recent Developments

The SEC has been proactive in addressing emerging financial challenges, including the regulation of cryptocurrencies and the implementation of measures to improve the resilience of the financial markets. The agency regularly updates its rules and guidelines to reflect changes in the market landscape and technological advancements.