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Комиссия по ценным бумагам и биржам США
Seal of the United States Securities and Exchange Commission.svg
Печать Комиссии по ценным бумагам и биржам США
US Security and Exchange Commission Office photo D Ramey Logan.jpg
Штаб-квартира Комиссии по ценным бумагам и биржам США в Вашингтоне, округ Колумбия
Обзор агентства
Сформирован6 июня 1934 г . ; 86 лет назад (1934-06-06)
ЮрисдикцияФедеральное правительство США
Штаб-квартираВашингтон, округ Колумбия , США
Сотрудники4 301 (2015) [1]
Руководитель агентства
Веб-сайтwww.sec.gov

Комиссия по ценным бумагам и биржам США ( SEC ) - крупное независимое агентство федерального правительства Соединенных Штатов, которое было создано после краха фондового рынка в 1930-х годах для защиты инвесторов и национальной банковской системы. [2] [3] [4] Основная цель SEC - обеспечить соблюдение закона против рыночных манипуляций . [5] [6] : 2

В дополнение к Закону о фондовых биржах 1934 года , на основании которого он был создан, Комиссия по ценным бумагам и биржам обеспечивает соблюдение Закона о ценных бумагах 1933 года , Закона о доверительном управлении 1939 года , Закона об инвестиционных компаниях 1940 года , Закона об инвестиционных консультантах 1940 года , Закона Сарбейнса-Оксли от 2002 г. и другие законодательные акты. Комиссия по ценным бумагам и биржам была создана в соответствии с разделом 4 Закона о фондовых биржах 1934 года (в настоящее время кодифицируется как 15 USC  § 78d и обычно именуется Законом о биржах или Законом 1934 года). [7]

Обзор [ править ]

У SEC есть миссия, состоящая из трех частей: защищать инвесторов; поддерживать справедливые, упорядоченные и эффективные рынки; и способствовать накоплению капитала. [8]

Для выполнения своего мандата Комиссия по ценным бумагам и биржам обеспечивает соблюдение законодательного требования о том, чтобы публичные компании и другие регулируемые компании представляли квартальные и годовые отчеты , а также другие периодические отчеты. В дополнение к годовым финансовым отчетам руководители компании должны предоставить подробный отчет, называемый « управленческим обсуждением и анализом » (MD&A), который описывает предыдущий год деятельности и объясняет, какие дела у компании за этот период времени. MD&A обычно также затрагивает предстоящий год, обрисовывая будущие цели и подходы к новым проектам. В попытке уравнять правила игры для всех инвесторов, SEC поддерживает онлайн-базу данных под названием EDGAR.(Электронная система сбора, анализа и поиска данных) онлайн, из которой инвесторы могут получить доступ к этой и другой информации, хранящейся в агентстве.

Квартальные и полугодовые отчеты публичных компаний имеют решающее значение для инвесторов, позволяющих принимать обоснованные решения при инвестировании на рынках капитала. В отличие от банковского дела , инвестиции в рынки капитала не гарантируются федеральным правительством. Потенциал больших прибылей необходимо сравнивать с потенциалом значительных потерь. Обязательное раскрытие финансовой и другой информации об эмитенте и самой ценной бумаге дает частным лицам, а также крупным учреждениям одни и те же основные факты о публичных компаниях, в которые они инвестируют, тем самым повышая общественный контроль и сокращая инсайдерскую торговлю и мошенничество .

SEC делает отчеты доступными для общественности через систему EDGAR. SEC также предлагает публикации по темам, связанным с инвестициями, для государственного образования. Та же онлайн-система также принимает советы и жалобы от инвесторов, чтобы помочь SEC выследить нарушителей законодательства о ценных бумагах. Комиссия по ценным бумагам и биржам придерживается строгой политики никогда не комментировать существование или статус продолжающегося расследования.

История [ править ]

Фон [ править ]

До принятия федеральных законов о ценных бумагах и создания Комиссии по ценным бумагам и биржам торговля ценными бумагами регулировалась так называемыми законами о голубом небе . Эти законы были приняты и исполнялись на государственном уровне и регулировали предложение и продажу ценных бумаг для защиты населения от мошенничества. Хотя конкретные положения этих законов различались в разных штатах, все они требовали регистрации всех предложений и продаж ценных бумаг, а также всех американских биржевых маклеров и брокерских фирм. [9] Однако законы голубого неба обычно считались неэффективными. Например, еще в 1915 году Ассоциация инвестиционных банкиров сообщила своим членам, что они могут обходить законы голубого неба, предлагая ценные бумаги через границы штата по почте. [10]

Основание [ править ]

См. Также: Закон о ценных бумагах 1933 года и Закон о фондовых биржах 1934 года.

Полномочия SEC были установлены Законом о ценных бумагах 1933 года и Законом о фондовых биржах 1934 года; оба закона считаются частью программы Франклина Д. Рузвельта « Новый курс ».

После слушаний Комиссии Пекоры о злоупотреблениях и мошенничестве на рынках ценных бумаг Конгресс принял Закон о ценных бумагах 1933 года ( 15 USC  § 77a ), который на федеральном уровне регулирует первоначальные выпуски ценных бумаг в разных штатах, в первую очередь, требуя, чтобы компании-эмитенты регистрировали распределения до продажи, чтобы что инвесторы могут получать доступ к основной финансовой информации и принимать обоснованные решения. [11] В течение первого года после вступления в силу закона исполнение закона возлагалось на Федеральную торговую комиссию.

Последующий Закон о фондовых биржах 1934 года ( 15 USC  § 78d ) регулирует вторичные рынки ценных бумаг. Закон 1934 года регулирует вторичную торговлю между физическими лицами и компаниями, которые часто не связаны с первоначальными эмитентами ценных бумаг. Субъекты, находящиеся в ведении SEC, включают биржи ценных бумаг с физическими торговыми площадками, такими как Нью-Йоркская фондовая биржа , саморегулируемые организации , Совет по регулированию муниципальных ценных бумаг , NASDAQ , альтернативные торговые системы., и любые другие лица, участвующие в транзакциях за чужие счета. Раздел 4 Закона 1934 года передал полномочия по обеспечению соблюдения Федеральной торговой комиссии в соответствии с Законом 1933 года вновь созданной Комиссии по ценным бумагам и биржам и поручил новой Комиссии обеспечить соблюдение обоих законов. [12]

Джозеф П. Кеннеди-старший , первый председатель Комиссии по ценным бумагам и биржам

В 1934 году Рузвельт назвал своего друга Джозефа П. Кеннеди , мультимиллионера, финансиста и лидера ирландско-американского сообщества, заработавшего свои деньги. Рузвельт выбрал Кеннеди отчасти на основании его опыта на Уолл-стрит, как человека, который знал рынки достаточно хорошо, чтобы их очистить. [13] Двое из пяти других уполномоченных были Джеймс М. Лэндис и Фердинанд Пекора . Кеннеди добавил в штат SEC несколько умных молодых юристов, в том числе Уильяма О. Дугласа и Эйба Фортаса , которые позже стали судьями Верховного суда. [14]

Команда Кеннеди определила четыре задачи новой Комиссии: (1) восстановить доверие инвесторов к рынку ценных бумаг, который практически рухнул; (2) восстановить целостность рынков ценных бумаг путем преследования и устранения мошенничества и необоснованной практики, нацеленной на инвесторов; (3) положить конец инсайдерской торговле на миллионы долларов высокопоставленными должностными лицами крупных корпораций; и (4) создать сложную и универсальную систему регистрации ценных бумаг, продаваемых в Америке, с четким набором сроков, правил и руководящих принципов. Комиссия по ценным бумагам и биржам преуспела; Кеннеди заверил американское деловое сообщество, что Уолл-стрит больше не будет их обманывать, обманывать и использовать в своих интересах. Он стал сторонником того, чтобы обычные инвесторы вернулись на рынок и позволили экономике снова расти. [15]

Позже комиссары и председатели SEC включают Уильяма О. Дугласа , Джерома Фрэнка и Уильяма Дж. Кейси .

С 1994 года к большинству регистрационных заявлений (и связанных с ними материалов), поданных в SEC, можно получить доступ через онлайн-систему SEC, EDGAR. [11]

В 2019 году Историческое общество Комиссии по ценным бумагам и биржам представило онлайн-галерею, чтобы проиллюстрировать изменения в структуре рынка ценных бумаг США с 1930-х годов. В онлайн-галерее представлена ​​повествовательная история, подкрепленная десятками документов, статей, интервью, фотографий и видео. [3]

Список кафедр [ править ]

См. Также: Список членов Комиссии по ценным бумагам и биржам
#КартинаИмяГосударство проживанияСрок полномочийНазначен
1Джозеф П. Кеннеди-старший.Массачусетс30 июня 1934 г. - 23 сентября 1935 г.Франклин Д. Рузвельт
2Джеймс М. ЛэндисМассачусетс23 сентября 1934 г. - 15 сентября 1937 г.Франклин Д. Рузвельт
3Уильям О. ДугласМиннесота17 августа 1937 - 15 апреля 1939 гг.Франклин Д. Рузвельт
4Джером ФранкИллинойс18 мая 1939 г. - 9 апреля 1941 г.Франклин Д. Рузвельт
5Эдвард С. ЭйхерАйова1941-1942 гг.Франклин Д. Рузвельт
6Гансон Перселл1942-1946 гг.Франклин Д. Рузвельт
7Джеймс Дж. Кэффри1946-1947 гг.Гарри С. Трумэн
8Эдмонд М. ХанраханНью-Йорк18 мая 1948 г. - 3 ноября 1949 г.Гарри С. Трумэн
9Гарри А. Макдональд4 ноября 1949 г. - 25 февраля 1952 г.Гарри С. Трумэн
10Дональд С. КукМичиган26 февраля 1952 г. - 17 июня 1953 г.Гарри С. Трумэн
11Ральф Х. ДеммлерПенсильвания27 июня 1953 г. - 25 мая 1955 г.Дуайт Д. Эйзенхауэр
12Дж. Синклер АрмстронгНью-Йорк1955 - 1957 гг.Дуайт Д. Эйзенхауэр
13Эдвард Н. ГэдсбиМассачусетс20 августа 1957 г. - 26 марта 1961 г.Дуайт Д. Эйзенхауэр
14Уильям Л. Кэри1961 - 1964 гг.Джон Ф. Кеннеди
15Мануэль Ф. Коэн1964-1969 гг.Линдон Б. Джонсон
16Хамер Х. БаджАйдахоFebruary 22, 1969 – January 2, 1971Richard Nixon
17William J. CaseyNew YorkApril 14, 1971 – February 2, 1973Richard Nixon
18G. Bradford CookNebraskaMarch 3, 1973 — May 16, 1973Richard Nixon
19Ray Garrett Jr.Illinois1973 – 1975Richard Nixon
20Roderick M. HillsCaliforniaOctober 28, 1975 — April 10, 1977Gerald Ford
21Harold M. WilliamsCaliforniaApril 18, 1977 — March 1, 1981Jimmy Carter
22John S.R. Shad1981 – 1987Ronald Reagan
23David Sturtevant RuderIllinoisAugust 7, 1987 – September 30, 1989Ronald Reagan
24Richard C. BreedenNew YorkOctober 11, 1989 – May 7, 1993George H.W. Bush
25Arthur LevittNew YorkJuly 27, 1993 – February 9, 2001Bill Clinton
26Harvey PittNew YorkAugust 3, 2001 – February 18, 2003George W. Bush
27William H. DonaldsonNew YorkFebruary 18, 2003 – June 30, 2005George W. Bush
28Christopher CoxCaliforniaAugust 3, 2005 – January 20, 2009George W. Bush
29Mary SchapiroNew YorkJanuary 27, 2009 – December 14, 2012Barack Obama
30Elisse B. WalterNew YorkDecember 14, 2012 – April 10, 2013Barack Obama
31Mary Jo WhiteNew YorkApril 10, 2013 – January 20, 2017Barack Obama
32Jay ClaytonPennsylvaniaMay 4, 2017 – December 23, 2020Donald Trump
33Gary GenslerMarylandApril 17, 2021 – IncumbentJoe Biden

Organizational structure[edit]

Commission members[edit]

Main article: List of members of the Securities and Exchange Commission

The Commission has five Commissioners who are appointed by the President of the United States. No more than three Commissioners may belong to the same political party. Their terms last five years and are staggered so that one commissioner's term ends on June 5 of each year. Service may continue up to eighteen additional months past term expiration.

The President also designates one of the Commissioners as Chairman, the SEC's top executive. However, the President does not possess the power to fire the appointed Commissioners, a provision that was made to ensure the independence of the SEC. This issue arose during the 2008 presidential election in connection with the ensuing financial crises.

Current SEC Commissioners[16][17]
NamePartyTook officeTerm expires
Gary Gensler (Chair)DemocraticApril 17, 2021June 5, 2026
Allison LeeDemocraticJune 20, 2019June 5, 2022
Caroline A. CrenshawDemocraticAugust 17, 2020June 5, 2024
Hester PeirceRepublicanJanuary 11, 2018June 5, 2025
Elad L. RoismanRepublicanSeptember 11, 2018June 5, 2023

Divisions[edit]

U.S. Securities and Exchange Commission headquarters in Washington, D.C., near Union Station

Within the SEC, there are five divisions. Headquartered in Washington, D.C..

The SEC's divisions are:[4]

  • Corporation Finance
  • Trading and Markets
  • Investment Management
  • Enforcement
  • Economic and Risk Analysis

Corporation Finance is the division that oversees the disclosure made by public companies, as well as the registration of transactions, such as mergers, made by companies. The division is also responsible for operating EDGAR.

The Trading and Markets division oversees self-regulatory organizations such as the Financial Industry Regulatory Authority (FINRA) and Municipal Securities Rulemaking Board (MSRB) and all broker-dealer firms and investment houses. This division also interprets proposed changes to regulations and monitors operations of the industry. In practice, the SEC delegates most of its enforcement and rulemaking authority to FINRA. In fact, all trading firms not regulated by other SROs must register as a member of FINRA. Individuals trading securities must pass exams administered by FINRA to become registered representatives.[18][19]

The Investment Management Division oversees registered investment companies, which include mutual funds, as well as registered investment advisors. These entities are subject to extensive regulation under various federal securities laws.[20] The Division of Investment Management administers various federal securities laws, in particular, the Investment Company Act of 1940 and Investment Advisers Act of 1940. This division's responsibilities include:[21]

  • assisting the Commission in interpreting laws and regulations for the public and SEC inspection and enforcement staff;
  • responding to no-action requests and requests for exemptive relief;
  • reviewing investment company and investment adviser filings;
  • assisting the Commission in enforcement matters involving investment companies and advisers; and
  • advising the Commission on adapting SEC rules to new circumstances.

The Enforcement Division works with the other three divisions, and other Commission offices, to investigate violations of the securities laws and regulations and to bring actions against alleged violators. The SEC generally conducts investigations in private. The SEC's staff may seek voluntary production of documents and testimony, or may seek a formal order of investigation from the SEC, which allows the staff to compel the production of documents and witness testimony. The SEC can bring a civil action in a U.S. District Court, or an administrative proceeding which is heard by an independent administrative law judge (ALJ). The SEC does not have criminal authority but may refer matters to state and federal prosecutors. The director of the SEC's Enforcement Division Robert Khuzami left the office in February 2013.[22]

The Economic and Risk Analysis Division (DERA) was created in September 2009 to integrate financial economics and rigorous data analytics into the core mission of the SEC. The Division is involved across the entire range of SEC activities, including policy-making, rule-making, enforcement, and examination. As the agency's "think tank," DERA relies on a variety of academic disciplines, quantitative and non-quantitative approaches, and knowledge of market institutions and practices to help the Commission approach complex matters in a fresh light. DERA also assists in the Commission's efforts to identify, analyze, and respond to risks and trends, including those associated with new financial products and strategies. Through the range and nature of its activities, DERA serves the critical function of promoting collaborative efforts throughout the agency and breaking through silos that might otherwise limit the impact of the agency's institutional expertise. The Division's activities include providing detailed, high-quality economic and statistical analyses, and specific subject-matter expertise to the Commission and other Divisions/Offices and developing customized, analytic tools and analyses to proactively detect market risks indicative of possible violations of the Federal securities laws. Using data, DERA staff create analytic programs designed to detect patterns identifying risks, enabling Commission divisions and offices to deploy scarce resources targeting possible misconduct. DERA also houses the Commission's Chief Economist.[citation needed]

Regional offices[edit]

There are 11 regional offices throughout the US with the name of the regional director.[23]

  • Atlanta – Richard Best
  • Boston – Paul Levenson
  • Chicago – Joel R. Levin
  • Denver – Kurt Gottschall
  • Fort Worth – David Peavler
  • Los Angeles – Michele Wein Layne
  • Miami – Eric I. Bustillo
  • New York City – Marc Berger
  • Philadelphia – Kelly L. Gibson
  • Salt Lake City – Daniel J. Wadley
  • San Francisco – Erin Schneider

Among the SEC's offices are:

  • The Office of General Counsel, which acts as the agency's "lawyer" before federal appellate courts and provides legal advice to the Commission and other SEC divisions and offices;
  • The Office of the Chief Accountant, which establishes and enforces accounting and auditing policies set by the SEC. This office has played a role in such areas as working with the Financial Accounting Standards Board to develop Generally Accepted Accounting Principles, the Public Company Accounting Oversight Board in developing audit requirements, and the International Accounting Standards Board in advancing the development of International Financial Reporting Standards;
  • The Office of Compliance, Inspections and Examinations, which inspects broker-dealers, stock exchanges, credit rating agencies, registered investment companies, including both closed-end and open-end (mutual funds) investment companies, money funds. and Registered Investment Advisors;
  • The Office of International Affairs, which represents the SEC abroad and which negotiates international enforcement information-sharing agreements, develops the SEC's international regulatory policies in areas such as mutual recognition, and helps develop international regulatory standards through organizations such as the International Organization of Securities Commissions and the Financial Stability Forum; and
  • The Office of Information Technology, which supports the Commission and staff in information technology, including application development, infrastructure operations. and engineering, user support, IT program management, capital planning, security, and enterprise architecture.
  • The Inspector General. The SEC announced in January 2013 that it had named Carl Hoecker the new inspector general.[24][25] He has a staff of 22.[26]
  • The SEC Office of the Whistleblower provides assistance and information from a whistleblower who knows of possible securities law violations: this can be among the most powerful weapons in the law enforcement arsenal of the Securities and Exchange Commission.[27] Created by Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act Dodd–Frank Wall Street Reform and Consumer Protection Act amended the Securities Exchange Act of 1934 (the "Exchange Act") by, among other things, adding Section 21F, entitled "Securities Whistleblower Incentives and Protection".[28] Section 21F directs the Commission to make monetary awards to eligible individuals who voluntarily provide original information that leads to successful Commission enforcement actions resulting in the imposition of monetary sanctions over $1,000,000, and certain successful related actions.[29]

Communications[edit]

Comment letters[edit]

Comment letters are issued by the SEC's Division of Corporation Finance in response to a company's public filing.[30] This letter, initially private, contains an itemized list of requests from the SEC. Each comment in the letter asks the filer to provide additional information, modify their submitted filing, or change the way they disclose in future filings. The filer must reply to each item in the comment letter. The SEC may then reply back with follow-up comments.[31] This correspondence is later made public.

In October 2001 the SEC wrote to CA, Inc., covering 15 items, mostly about CA's accounting, including 5 about revenue recognition.[32] The chief executive officer of CA, to whom the letter was addressed, pleaded guilty to fraud at CA in 2004.[32]

In June 2004, the SEC announced that it would publicly post all comment letters, to give investors access to the information in them. An analysis of regulatory filings in May 2006 over the prior 12 months indicated, that the SEC had not accomplished what it said it would do. The analysis found 212 companies that had reported receiving comment letters from the SEC, but only 21 letters for these companies were posted on the SEC's website. John W. White, the head of the Division of Corporation Finance, told the New York Times in 2006: "We have now resolved the hurdles of posting the information... We expect a significant number of new postings in the coming months."[32]

No-action letters[edit]

No-action letters are letters by the SEC staff indicating that the staff will not recommend to the Commission that the SEC undertake enforcement action against a person or company if that entity engages in a particular action. These letters are sent in response to requests made when the legal status of an activity is not clear. These letters are publicly released and increase the body of knowledge on what exactly is and is not allowed. They represent the staff's interpretations of the securities laws and, while persuasive, are not binding on the courts.

One such use, from 1975 to 2007, was with the nationally recognized statistical rating organization (NRSRO), a credit rating agency that issues credit ratings that the SEC permits other financial firms to use for certain regulatory purposes.

Freedom of Information Act processing performance[edit]

In the latest Center for Effective Government analysis of 15 federal agencies which receive the most Freedom of Information Act (FOIA) requests published in 2015 (using 2012 and 2013 data, the most recent years available), the SEC was among the 5 lowest performers, earned a D− by scoring 61 out of a possible 100 points, i.e. did not earn a satisfactory overall grade. It had deteriorated from a D− in 2013.[33]

Operations[edit]

List of major SEC enforcement actions (2009–12)[edit]

Main article: List of major SEC enforcement actions (2009–12)

The SEC's Enforcement Division took a number of major actions in 2009–12.

Regulatory action in the credit crunch[edit]

The SEC announced on September 17, 2008, strict new rules to prohibit all forms of "naked short selling" as a measure to reduce volatility in turbulent markets.[34][35]

The SEC investigated cases involving individuals attempting to manipulate the market by passing false rumors about certain financial institutions. The Commission has also investigated trading irregularities and abusive short-selling practices. Hedge fund managers, broker-dealers, and institutional investors were also asked to disclose under oath certain information pertaining to their positions in credit default swaps. The Commission also negotiated the largest settlements in the history of the SEC (approximately $51 billion in all) on behalf of investors who purchased auction rate securities from six different financial institutions.

Regulatory failures[edit]

The SEC has been criticized "for being too 'tentative and fearful' in confronting wrongdoing on Wall Street", and for doing "an especially poor job of holding executives accountable".[36][37][38]

Christopher Cox, the former SEC chairman, has recognized the organization's multiple failures in relation to the Bernard Madoff fraud.[39] Starting with an investigation in 1992 into a Madoff feeder fund that only invested with Madoff, and which, according to the SEC, promised "curiously steady" returns, the SEC did not investigate indications that something was amiss in Madoff's investment firm.[40] The SEC has been accused of missing numerous red flags and ignoring tips on Madoff's alleged fraud.[41]

As a result, Cox said that an investigation would ensue into "all staff contact and relationships with the Madoff family and firm, and their impact, if any, on decisions by staff regarding the firm".[42] SEC Assistant Director of the Office of Compliance Investigations Eric Swanson had met Madoff's niece, Shana Madoff, when Swanson was conducting an SEC examination of whether Bernard Madoff was running a Ponzi scheme because she was the firm's compliance attorney. The investigation was closed, and Swanson subsequently left the SEC, and married Shana Madoff.[43]

Approximately 45 percent of institutional investors thought that better oversight by the SEC could have prevented the Madoff fraud.[44] Harry Markopolos complained to the SEC's Boston office in 2000, telling the SEC staff they should investigate Madoff because it was impossible to legally make the profits Madoff claimed using the investment strategies that he said he used.[45]

In June 2010, the SEC settled a wrongful termination lawsuit with former SEC enforcement lawyer Gary J. Aguirre, who was terminated in September 2005 following his attempt to subpoena Wall Street figure John J. Mack in an insider trading case involving hedge fund Pequot Capital Management;[46] Mary Jo White, who later served as chair of the SEC, was at the time representing Morgan Stanley and was involved in this case.[47] While the insider case was dropped at the time, a month prior to the SEC's settlement with Aguirre the SEC filed charges against Pequot.[46] The Senate released a report in August 2007 detailing the issue and calling for reform of the SEC.[48]

On September 26, 2016 Democratic senator Mark Warner sent a letter to the SEC, asking them to evaluate whether the current disclosure regime was adequate, citing the low number of companies' disclosures to date.[49][50][51]

Inspector General office failures[edit]

In 2009, the Project on Government Oversight, a government watchdog group, sent a letter to Congress criticizing the SEC for failing to implement more than half of the recommendations made to it by its Inspector General.[52] According to POGO, in the prior two years, the SEC had taken no action on 27 out of 52 recommended reforms suggested in Inspector General reports, and still had a "pending" status on 197 of the 312 recommendations made in audit reports. Some of the recommendations included imposing disciplinary action on SEC employees who receive improper gifts or other favors from financial companies, and investigating and reporting the causes of the failures to detect the Madoff ponzi scheme.[53]

In a 2011 article by Matt Taibbi in Rolling Stone, former SEC employees were interviewed and commented negatively on the SEC's Office of the Inspector General (OIG). Going to the OIG was "well-known to be a career-killer".[54]

Because of concerns raised by David P. Weber, former SEC Chief Investigator, regarding conduct by SEC Inspector General H. David Kotz, Inspector General David C. Williams of the U.S. Postal Service was brought in to conduct an independent, outside review of Kotz's alleged improper conduct in 2012.[55] Williams concluded in his 66-page Report that Kotz violated ethics rules by overseeing probes that involved people with whom he had conflicts of interest due to "personal relationships".[55][56] The report questioned Kotz's work on the Madoff investigation, among others, because Kotz was a "very good friend" with Markopolos.[56][57][58][59] It concluded that while it was unclear when Kotz and Markopolos became friends, it would have violated U.S. ethics rules if their relationship began before or during Kotz's Madoff investigation.[56] The report also found that Kotz himself "appeared to have a conflict of interest" and should not have opened his Standford investigation, because he was friends with a female attorney who represented victims of the fraud.[57]

Destruction of documents[edit]

According to former SEC employee and whistleblower Darcy Flynn, also reported by Taibbi, the agency routinely destroyed thousands of documents related to preliminary investigations of alleged crimes committed by Deutsche Bank, Goldman Sachs, Lehman Brothers, SAC Capital, and other financial companies involved in the Great Recession that the SEC was supposed to have been regulating. The documents included those relating to "Matters Under Inquiry", or MUI, the name the SEC gives to the first stages of the investigation process. The tradition of destruction began as early as the 1990s. This SEC activity eventually caused a conflict with the National Archives and Records Administration when it was revealed to them in 2010 by Flynn. Flynn also described a meeting at the SEC in which top staff discussed refusing to admit the destruction had taken place, because it was possibly illegal.[54]

Iowa Republican Senator Charles Grassley, among others, took note of Flynn's call for protection as a whistleblower, and the story of the agency's document-handling procedures. The SEC issued a statement defending its procedures. NPR quoted University of Denver Sturm College of Law professor Jay Brown as saying: "My initial take on this is it's a tempest in a teapot," and Jacob Frenkel, a securities lawyer in the Washington, D.C., area, as saying in effect "there's no allegation the SEC tossed sensitive documents from banks it got under subpoena in high-profile cases that investors and lawmakers care about". NPR concluded its report:

The debate boils down to this: What does an investigative record mean to Congress? And the courts? Under the law, those investigative records must be kept for 25 years. But federal officials say no judge has ruled that papers related to early-stage SEC inquiries are investigative records. The SEC's inspector general says he's conducting a thorough investigation into the allegations. [Kotz] tells NPR that he'll issue a report by the end of September.[60]

Relationship to other agencies[edit]

In addition to working with various self-regulatory organizations such as the Financial Industry Regulatory Authority (FINRA), the Securities Investor Protection Corporation (SIPC), and Municipal Securities Rulemaking Board (MSRB), the SEC also works with other federal agencies, state securities regulators, international securities agencies and law enforcement agencies.[61]

In 1988 Executive Order 12631 established the President's Working Group on Financial Markets. The Working Group is chaired by the Secretary of the Treasury and includes the Chairman of the SEC, the Chairman of the Federal Reserve and the Chairman of the Commodity Futures Trading Commission. The goal of the Working Group is to enhance the integrity, efficiency, orderliness, and competitiveness of the financial markets while maintaining investor confidence.[62]

The Securities Act of 1933 was originally administered by the Federal Trade Commission. The Securities Exchange Act of 1934 transferred this responsibility from the FTC to the SEC. The Securities Exchange Act of 1934 also gave the SEC the power to regulate the solicitation of proxies, though some of the rules the SEC has since proposed (like the universal proxy) have been controversial.[63]:4[64]:2 The main mission of the FTC is to promote consumer protection and to eradicate anti-competitive business practices. The FTC regulates general business practices, while the SEC focuses on the securities markets.

The Temporary National Economic Committee was established by joint resolution of Congress 52 Stat. 705 on June 16, 1938. It was in charge of reporting to Congress on abuses of monopoly power. The committee was defunded in 1941, but its records are still under seal by order of the SEC.[65]

The Municipal Securities Rulemaking Board (MSRB) was established in 1975 by Congress to develop rules for companies involved in underwriting and trading municipal securities. The MSRB is monitored by the SEC, but the MSRB does not have the authority to enforce its rules.

The Asset Management Advisory Committee (AMAC)[66] was formally established on 1 November 2019, to provide the SEC with "diverse perspectives on asset management and related advice and recommendations". Topics the committee may address include trends and developments affecting investors and market participants, the effects of globalization, and changes in the role of technology and service providers. The committee is composed of outside experts, including individuals representing the views of retail and institutional investors, small and large funds, intermediaries, and other market participants.[67]

While most violations of securities laws are enforced by the SEC and the various SROs it monitors, state securities regulators can also enforce statewide securities blue sky laws.[9] States may require securities to be registered in the state before they can be sold there. National Securities Markets Improvement Act of 1996 (NSMIA) addressed this dual system of federal-state regulation by amending Section 18 of the 1933 Act to exempt nationally traded securities from state registration, thereby pre-empting state law in this area. However, NSMIA preserves the states' anti-fraud authority over all securities traded in the state.[68]

The SEC also works with federal and state law enforcement agencies to carry out actions against actors alleged to be in violation of the securities laws.

The SEC is a member of International Organization of Securities Commissions (IOSCO), and uses the IOSCO Multilateral Memorandum of Understanding as well as direct bilateral agreements with other countries' securities commissions to deal with cross-border misconduct in securities markets.

Related legislation[edit]

  • 1933: Securities Act of 1933
  • 1934: Securities Exchange Act of 1934
  • 1938: Temporary National Economic Committee (establishment)
  • 1939: Trust Indenture Act of 1939
  • 1940: Investment Advisers Act of 1940
  • 1940: Investment Company Act of 1940
  • 1968: Williams Act (Securities Disclosure Act)
  • 1982: Garn–St. Germain Depository Institutions Act
  • 1999: Gramm–Leach–Bliley Act
  • 2000: Commodity Futures Modernization Act of 2000
  • 2002: Sarbanes–Oxley Act
  • 2003: Fair and Accurate Credit Transactions Act of 2003
  • 2006: Credit Rating Agency Reform Act of 2006
  • 2010: Dodd–Frank Wall Street Reform and Consumer Protection Act
  • 2012: Volcker Rule (a specific section of the Dodd–Frank Act)
  • Title 17 of the Code of Federal Regulations

See also[edit]

  • Chicago Stock Exchange
  • Financial regulation
  • List of financial regulatory authorities by country
  • Regulation D (SEC)
  • Securities regulation in the United States
  • Securities market participants (United States)

Forms[edit]

  • SEC filing
    • Form 4 (stock and stock options ownership and exercise disclosure)
    • Form 8-K
    • Form 10-K
    • Form 10-Q
    • Form S-1 (IPO)

References[edit]

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External links[edit]

  • Official website
  • SEC in the Federal Register
  • Securities and Exchange Commission Historical Society
  • Association of Securities and Exchange Commission Alumni (ASECA)