Securities Committee. Moscow Commission on Securities and Fund Market

The US Securities and Exchange Commission is a government agency that is the primary supervisor and regulator of the securities market. The commission was created under President Roosevelt in 1934 to restore confidence in the stock market during the Great Depression. The first chairman of the SEC was the father of the future US president, Joseph Kennedy. The fundamental document for the creation of the commission was the 1934 law “On Trading in Securities”. In addition to it, the activities of the SEC are regulated by the following Laws:

On Securities (1933),
On the Trust Agreement (1939);
On Investment Companies (1940);
On Investment Advisers (1940);
Sarbanes-Oxley (2002).

The SEC is one of four major US regulators that are members of the President's Task Force on Financial Markets.

Composition and responsibilities of the US Securities and Exchange Commission

The Commission's 31st Chairman since the SEC's creation is currently Mary L. Shapiro. The SEC consists of 5 members, 4 branches and 18 bureaus. All members of the Commission are appointed by the President of the United States.

The SEC's two main functions are regulation and oversight of securities transactions and acquisitions of controlling interests in companies. This government agency is also responsible for overseeing the work of securities brokers and traders. The commission controls takeovers taking place in the country: when purchasing 5% or more of the share capital by a company or individual, information must be submitted to the SEC within 10 days.

The regulator establishes rules for registering securities for open trading, the activities of stock exchanges and markets, and monitors their compliance. The Commission also monitors compliance with the procedure for issuing securities. The SEC establishes financial reporting requirements and accounting standards for regulated companies, which annually file audited annual reports with the SEC.

Tasks of the SEC regulator

The Securities and Exchange Commission is exploring new ways to encourage financial companies to disclose real-world risks. To speed up the process, reports are published every three months indicating the amount of debt. SEC Chairman Mary Shapiro noted that the regulator carefully collects information about large companies, including banks, depriving them of the opportunity to embellish balance sheets by the end of the quarter in order to subsequently increase risk indicators.

By regulating the activities of controlled companies, the SEC seeks to:

Require companies selling their securities to provide reliable information about their financial position and the specific securities being sold. Companies must inform investors about possible risks.
Force SEC-licensed companies to act in the best interests of their investors.

The mission of the SEC is to protect investor rights, maintain efficient markets, and promote capital appreciation. The official position of the SEC is to promote the formation of capital reserves, as it is vital for the development of the economy as a whole.

Investing money in bonds and securities contains more risks than placing capital in bank deposits, so the SEC's goal is to provide information as complete as possible. One of the effective methods of informing the public has been the publication of reports from companies whose securities can be purchased on stock exchanges. For investors, the Commission has created a specialized website www.investor.gov.

SEC structure

The commission has five members appointed by the President of the United States. One of them receives the position of chairman. Only three of the five commission members can belong to the same party. The SEC is divided into departments that deal with:

Monitoring compliance with laws.
Corporate finance.
Investor protection.
Market supervision.
Strategies and financial innovations, actions related to risks.
Public relations.

The structure of the organization also includes a general director, chief inspector, general council and regional offices. The task of the department for monitoring compliance with the law is to search for evidence of the guilt of the accused and transfer claims to the courts. The Corporate Finance Department deals with financial reporting of companies. The investor protection department, in addition to its main function, must popularize the idea of capital formation.

Sphere of influence of the SEC

The Commission is authorized to supervise participants in the securities markets (stocks and bonds). Actively regulated participants include securities exchanges, clearing agencies, brokers, dealing desks, investment advisers and mutual funds (MTFs).

The SEC actively cooperates with major rating agencies, as companies wishing to issue securities on US exchanges must be rated by one of such agencies. The SEC also oversees mergers in the United States. The organization monitors the performance of financial instruments based on shares or bonds.

SEC oversight is carried out as follows:

The commission receives information from investors monitoring the quality of services and their own accounts.
Another way of supervision is working with exchanges.
Relationship with American and foreign regulators.
Analysis of reporting by market participants.
Help from independent self-regulatory organizations - FINRA and MSRB.

Investors who transact in the Forex market through SEC-regulated brokers may learn about the broker's rights and responsibilities, market issues, fraud, and the like. You can view the list of companies regulated by this organization on the official website:

Section 1. HistorySEC.

Section 2. Structure of the Securities Commission.

Section 3. Sphere of influence of the commission on securities and exchanges ().

Section 4. Methods of Supervision of the Commission on securities And exchanges.

Securities and Exchange Commission(SEC)- This US government agency is the main body responsible for the supervision and regulation of the American securities market. The commission was created in 1934 under President Roosevelt. The purpose of creating the Commission was to restore investor confidence in stock market in the Great Depression. The first chairman of the SEC was Joseph Kennedy, the father of the future. president John Kennedy's country.

The Commission was created in accordance with the negotiable paper Exchange Act of 1934. In addition to this Act, the activities of the Commission are regulated by the following essential laws:

Law on securities (negotiable paper Act of 1933),

If you are considering buying shares of US companies, take a good look at the information filed with the Securities and Exchange Commission about that company. Please remember that such information is best read in English. If you don't speak English very well, you can always take English language improvement courses. We recommend taking the English intensive course. Intensive methods of learning a foreign language are most suitable in your situation, and in addition, they will help save such precious time.

(SEC, USA) is

Sources

Wikipedia - The Free Encyclopedia, WikiPedia

theomniguild.com - Finance and investments

cofe.ru - Encyclopedia of Banking and Finance

victoryinvestors.com - Victory Investors

dic.academic.ru - Academician's Dictionary

glossary.ru - Glossary

Investor Encyclopedia. 2013 .

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Securities and Exchange Commission- (Securities and Exchange Commission, SEC) An American government agency that closely monitors the activities of stock brokers and securities traders. The Commission also monitors takeovers carried out in the United States. IN… … Financial Dictionary

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securities and exchange commission- An American government agency that closely monitors the activities of stock brokers and securities traders. The Commission also monitors takeovers carried out in the United States. In the event that any person or organization... Technical Translator's Guide

SECURITIES AND EXCHANGE COMMISSION- (Securities and Exchange Commission, SEC) An American government agency that oversees the activities of stockbrokers and securities traders. Also exercises control over acquisitions carried out in the United States. If… … Dictionary of business terms

SECURITIES AND EXCHANGE COMMISSION- (Securities and Exchange Commission, SEC) In the United States, the main government agency that oversees securities trading and the process of acquiring companies through the purchase of a controlling stake. Economy. Dictionary. M... Economic dictionary

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The Securities and Exchange Commission is the primary US federal agency that oversees securities trading.

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SECURITIES AND EXCHANGE COMMISSION

(SECURITIES AND EXCHANGE COMMISSION). The federal agency established by the Securities Exchange Act of 1934, which began operation on July 2, 1934, to administer the provisions of that act and the SECURITIES ACT of 1933, which was previously administered by the Federal Trade Commission. In addition to these acts, the SEC is also responsible for implementing the Public Utilities Holding Company Act of 1935, the Trust Contract Act of 1939, the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Investor Protection Act of 1970 and the Foreign Bribery Act of 1977. The Commission also assists district courts in FCRA reorganization cases and excludes International Bank for Reconstruction and Development securities from registration requirements (Section 15 Bretton Woods Agreements 1945) and certifies that a particular investment company is not subject to taxation in connection with the financial. Development Corporation (Section 851(e) of the Internal Revenue Code of 1954) The SEC has three primary missions: enforcing the principle of disclosure by issuers in public offerings of securities, initiating legal proceedings when fraud is discovered, and registering securities offered to the general public. investors. The SEC oversees compliance with federal securities laws, the purpose of which is to provide information and protect investors, create conditions for the market to be fair and transparent and, if necessary, enforce these laws through sanctions. The exclusive functions of the commission include: monitoring that complete and objective information is provided in registration applications, prospectuses, proxy voting documents, and annual reports of issuers and stock exchanges; regulation of securities markets; regulation of mutual funds and other investment companies; regulation of holding companies and utility companies; regulation of investment advisers; reorganization of bankrupt corporations under Chapter 11 of the Bankruptcy Code (11 U.S.C. 1109); representing holders of debt securities under the Trust Indenture Act of 1939 (15 U.S.C. 77aaa-77bbbb); implementing laws through sanctions. By their nature, the decisions made by the commission are semi-official: their implementation is carried out only by the judiciary. The commission consists of five members, of which no more than three can be representatives of one political party. They are appointed by the President (with the consent of the Senate) for five years. The term of office of one member expires annually. The Chairman is appointed by the President (Sec. 3, Reorg (Sec. 3, Reorganization Plan 10 of 1950). The structure of the SEC is shown in the attached diagram. The crisis in the securities market in 1967-1969, caused mainly by the failure to deliver securities on a timely basis, led to the creation in December 1970 of a special organization, the INVESTOR PROTECTION CORPORATION, to protect investors from bankruptcies of brokerage firms.Development of a national securities market.The 1975 amendments to the Securities Laws directed the SEC to create a national system for trading securities and national settlement and clearing system. Since then, the SEC has not stopped working on their creation. Since the beginning of 1982, an electronic system has been operating, uniting seven stock exchanges and the over-the-counter market into a single network. At first, it included only 30 shares. Another step towards the creation national securities market was the introduction of a unified system of registration of transactions in securities and a unified system of quotation. Amendments of 1975 (section 17A) also extended the regulatory authority of the SEC to transactions related to the settlement of securities in order to facilitate rapid and accurate clearing and settlement of securities transactions. Clearing organizations must register with the SEC and submit regular reports on their activities to the SEC, which, in turn, checks whether the rules of these clearing organizations comply with the law. The powers to control clearing institutions, the role of which is mainly performed by banks, according to the 1975 Amendments, are delegated to the relevant banking regulatory body. Power to make rules regarding the storage of money. funds and securities of clearing institutions - banks, are divided between the commission and the appropriate banking regulatory authority. The Securities Exchange Act was also amended in 1975, which required securities transfer agents other than banks to register with the SEC. Transfer agent banks are required to register with the relevant banking regulatory organization. The SEC has broad authority to impose regulations on all aspects of the activities of transfer agents. However, as with clearing institutions, if the transfer agent is a bank, the relevant banking regulatory agency has control and sanctioning powers and the authority to make rules regarding the safekeeping of funds. funds and securities by the transfer agent, the bank, are divided between the commission and the appropriate banking regulatory authority. Section 17 A(e) of the amendments also tasked the SEC with eliminating the physical movement of stock certificates in settlements. In addition, the commission was directed, under Section 12(m), to examine the practice of registering securities in a `street name', i.e., in the name of a nominee as opposed to the actual owner of the securities receiving the income, and to report the findings Congressional investigations. Municipal securities. Section 15B of the 1975 Amendments introduced a registration requirement for brokers, dealers, and banks regularly engaged in the purchase, sale, and other transactions in municipal securities (excluding trust transactions). However, issuers of municipal securities continue to be exempt from the registration requirements of the securities laws. A special Council has been created to regulate the activities of brokers and dealers involved in transactions in municipal securities. The SEC has the authority to approve, repeal, or amend any rules submitted by the board. Under Sections 10(b)b 15(c) of the Securities Exchange Act, the SEC may intervene directly if it detects deception or fraud. However, the board does not have any authority to audit or enforce its rules. This is a statutory duty of the NATIONAL ASSOCIATION OF STOCK DEALERS with respect to its member firms (Secs. 15A(b)(7) and 15B(c)(7). Similarly, if municipal securities dealers are banks, this duty falls to the appropriate banking regulatory authority (Secs. 15B(c)(5) and 17(b). Proxy (shareholder voting proxy). The SEC regulates proxy voting. A proxy is a document given to a shareholder to exercise his or her rights, in These include: election of directors, changes to the charter of a corporation, appointment of an independent auditor, issuance of securities, etc. Proxies are usually used when voting at annual meetings of shareholders. Proxies are used not only by the board of directors, but also by individual shareholders or a group of shareholders. The SEC has established a number of rules action if shareholder proposals conflict with the position of the board of directors.1.The proposer must have the right to vote.2.The proposer or his representative must be present in person at the annual meeting to present his proposal. 3. The proposal itself must be received at least 90 days before the proxies themselves are sent out.4. The proposal should not resemble a similar proposal that was rejected in the previous five years. Accountants. Accountants deal with the corporate finance department and the SEC's Office of the Chief Accountant. The main responsibility of the Corporate Finance Department is to ensure that the financial the information provided to the public in connection with the sale of securities was complete and not misleading. The Chief Accountant acts as the Commission's chief consultant on accounting and auditing issues. Rule S-X (Form and Contents of Financial Statements), accounting publications, and the recently launched series of financial publications. reporting - these are the main documents that disclose the form, content and methods used in providing information to the SEC. Although the SEC has its own rules and procedures, it allows private companies to use `generally accepted accounting principles.' Bank Accounting and Reporting. The Securities Act of 1933 requires that securities offered for public offering be registered with the Commission. The Securities Exchange Act of 1934 requires public companies to comply with rules set by the Financial Disclosure Commission. information in the following areas: registration of classes of securities, regular reporting, distribution of proxies and documents with an offer to purchase shares. The Commission's authority in these matters extends to holding companies that own banks and savings and loan associations. Securities issued directly by depository institutions are generally exempt from registration under the Securities Act. Currently there are approximately 1000 banks and approx. 70 savings and loan holding companies submit reports to the Commission. Approximately 400 banks submit securities reports to three bank regulators, which are responsible for examining them. Section 12(i) requires banking regulators to have their regulations `generally similar' to the Commission's Regulations. In general, the Commission specifies the accounting principles and other requirements to be followed in the preparation of securities reports by public banks that are members Federal Deposit Insurance Corporation. Banking regulators require depository institutions to comply with GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) for most transactions. SEC Rule S-X provides that reports made in violation of GAAP are considered misleading. Fin. GAAP and auditor-certified reports form the basis of all issuer disclosures to investors. Banking regulatory authorities do not require mandatory confirmation of financial information. bank reports by an independent auditor. The Federal Reserve Board requires independent auditor certification only for bank holding companies with total assets equal to or greater than $150 million. Under federal securities laws, the SEC has the authority to investigate and take enforcement action when laws are violated. , which involves deception committed by a bank, bank holding company or related entities. The Commission has in its arsenal the following tools to influence violators of federal securities laws: petition for an injunction; administrative measures requiring compliance with the conditions of the law on reporting; disciplinary actions against professional participants, including accountants and auditors; restrictions on professional activities in the securities market. Since 1981, the Commission has taken 15 disciplinary and other actions against banking institutions due to insufficient reserves for loan losses, provision of incorrect or misleading information regarding financial matters. position and performance, exaggeration of profits and loans, fraud, and various reporting violations. To ensure full disclosure of information to investors through the materials submitted to it, the Commission has adopted certain reporting standards for bank holding companies, which complement the GAAP standards :1. Article 9 of the Code of Practice S-X prescribes a certain form and content of finance. reports for bank holding companies when submitting documents to the commission. Article 9 requires disclosure of information in connection with foreign transactions.2. It is required to provide information on the structure of assets, liabilities and share capital, information on the structure of the investment portfolio, the structure of loans (broken down by industry and volume), the degree of concentration of loans from foreign borrowers, the sensitivity of assets and liabilities to changes in the interest rate, risk factors and losses incurred in connection with loan operations.3. Accounting Bulletins Nos. 49 and 49A provide for the disclosure by bank holding companies of information about loans to foreigners. to the government who have problems with liquidity. They also contain clarifications on how additional information should be provided on the restructuring of existing debts abroad, the financing of additional borrowings, etc.4. Accounting Bulletin No. 50 describes how information should be reported in connection with the formation of a holding company with one bank.5. Bulletin No. 56 published the point of view of the commission staff regarding the disclosure of information on allocated reserves for insurance against risks associated with the transfer of securities, which are required to be held at the direction of banking regulatory and supervisory authorities. CODE OF RULES S-X, as well as special publications establish accounting principles , which should be followed when preparing financial statements. reporting to the commission. Accounting bulletins contain additional clarification. S-K CODE OF RULES details the rules for including non-financial information in registration statements, annual reports and proxies. character. This includes a description of controversial and analytical issues related to the management of the company, disagreements with accountants, necessary information about new issues of shares. Special financial. issues contain additions or innovations important to financial compilers. reports and other documents, and other information affecting audit activities and auditing standards. The Accounting and Auditing Special Issues contain a description of the SEC's sanctions against accountants. These releases include descriptions and texts of the commission's hearings. In 1980, the SEC began a project designed to reduce duplication of submissions to the Commission by harmonizing disclosure requirements. The SEC has adopted a standard list of financial information included in the annual report, and then made a reservation that when drawing up other documents it is enough to make a reference to the relevant section of the annual report. In addition, the Commission developed the so-called. a basic information package that includes the most important information investors need to assess the risk associated with investing in a given company's securities. This package distinguishes between five classes of basic information: market prices and dividends on common shares; information characterizing the financial situation over the past five years; assessment and analysis by financial managers. position and performance results; audited financial statements. reports and related information; etc. information (brief description of activities, characteristics of operations and management, special information required from such specific industries as banking and insurance). Additional periodic reporting includes the following documents. FORM 10-K includes financial reports, graphs, tables, descriptions of issues on which security holders will have to vote. Form 10-Q is a quarterly report. It is filed within 45 days after the end of each quarter, except the fourth, when the annual report is filed on Form 10-K. Form 8-K is used to disclose information of an unexpected nature: a change in control of the issuer, the acquisition or sale of a significant part of the assets, bankruptcy or takeover of the issuer, change of auditors of the issuer, change of directors of the issuer, etc. information that may be important to investors .The Securities Exchange Act of 1934 established a limited degree of legal responsibility of accountants in connection with their participation in the preparation and presentation of periodic reports. They bear civil liability for providing false or misleading information. The SEC enforces the filing and reporting of information through an electronic data collection, analysis, and retrieval system known as EDGAR (Electronic Data Gathering, Analysis and Retrieval). This system allows firms to transmit information to the SEC through electronic communications channels, which improves the transfer of information and makes it more efficient. Reorganization of corporations. Chapter 11 of the Bankruptcy Code gives the SEC the right to participate in any reorganization case and present its views on any issue. Chapter 11 applies to all types of business reorganizations. The commission is usually limited to participation in large cases related to the protection of investor interests. It can provide its views on whether the processes associated with the reorganization are accurately reflected in the submitted reports and be directly involved in the application of sanctions if necessary. Plans of reorganization often involve the debtor issuing new securities that are not required to be registered (under Section 6 of the Securities Act of 1933).

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(USA)(English) The United States Securities and Exchange Commission (SEC) ) - an agency of the US government is the main body responsible for the supervision and regulation of the American securities market. The commission was created in the city under President Roosevelt. The purpose of creating the Commission was to restore investor confidence in the stock market during the Great Depression. The first chairman of the SEC was Joseph Kennedy, the father of the future president of the country, John F. Kennedy.

The Commission was created in accordance with the Securities Exchange Act of 1934. In addition to this Act, the activities of the Commission are regulated by the following significant laws:

Securities Act of 1933
The Trust Indenture Act of 1939
The Investment Company Act of 1940
The Investment Advisers Act of 1940
The Sarbanes-Oxley Act of 2002.

The current Chairman of the Commission is Mary L. Shapiro, appointed by US President Barack Obama and confirmed by the US Senate.

Links

Securities and Exchange Commission - Home Page

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Securities Commission (Brazil)
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Securities and Exchange Commission (abbreviated SEC) is the official government organization of America, whose task is to monitor and control the work of all participants in the securities market. All acquisitions that take place in the United States are also regulated by the SEC. If an organization or even an individual buys more than five percent of the shares of any company, then they are required to notify the Commission of their acquisition within ten days.

When and why was the Commission created?

The history of the organization begins in 1934, during the administration of President Roosevelt. At that time, the establishment of the Commission was necessary in order to restore lost investor confidence in stock market transactions against the backdrop of the Great Depression, which in itself was not an easy task. The SEC is now headed by Mary Shapiro, who was appointed by President Barack Obama and was confirmed by the US Senate.

Main tasks and powers of the Commission

The SEC's mission is to protect investors, maintain open, fair, and efficient markets, and promote capital appreciation. For private investors, the Commission's focus on protecting their interests is of great importance. Another task of the SEC is to popularize the formation of so-called capital for the future, which is an important condition for the country’s economic growth. Investing in various remains a very risky activity, at least putting funds into a bank deposit is much easier and often safer. Therefore, such activities require constant stimulation and motivation of market participants to carry out transactions with securities. Therefore, the SEC takes upon itself the responsibility to cover information regarding securities as fully as possible, that is, to openly publish financial reports of those companies whose shares are traded on stock exchanges. Which stock market participants are subject to control by the Securities Commission? First of all, these are directly stock exchanges, dealers and brokers who conduct transactions with securities, mutual funds, as well as investment advisers. The Commission's responsibilities also include the supervision of derivative financial instruments based on shares. In addition, the SEC oversees and actively cooperates with global rating agencies, including Standard and Poor’s and Moody’s. The fact is that any company that plans to list its securities on American exchanges needs a preliminary assessment by a rating agency.

How control is carried out

A large amount of information comes to the Commission directly from the investors themselves. The second source is exchanges. And finally, cooperation with regulators, both local and foreign, plays an important role.

Who does the SEC fine and for what?

The Securities Commission has the right to fine any participant in securities transactions. For example, not long ago the SEC fined the auditing company PwC one million dollars, which violated the audit rules in its work. And the partner of the auditing company, Philip Hirsch, received another punishment: a ban on transactions on the stock market for a year. So the punishments can be completely different. More than once, negligent brokers who offered their services without the appropriate license received their punishment from the Commission. Entire exchanges are also fined. For example, last year a large fine of $300,000 was issued to the Chicago Stock Exchange, which was accused of violating securities trading rules in the information sector. By the way, three more American stock exchanges were fined that same year. It is worth noting that the Securities Commission has been tightening its control over stock market participants over the years.