The primary mission of the
Securities and Exchange Commission (SEC)
is to protect investors and to maintain the integrity of the securities markets. If that mission sounds broad, that’s because it’s meant to be, giving the commission the flexibility to supervise and regulate every aspect of the investment industry.
That work is the responsibility of 4 divisions:
The Division of Corporation
Finance oversees corporate disclosure to the public.
Publicly traded corporations are required to register
all their securities offerings and submit quarterly
financial reports (10-Q reports) and audited annual
financial reports (10-K reports). They must also
make an annual report available to shareholders.
The Division
of Market Regulation sets and enforces standards
for the securities markets. It oversees
brokerage
firms,
transfer agents,
clearinghouses,
and stock markets and exchanges, including the
NYSE and
the
NASDAQ
Stock Market.
The Division
of Investment Management oversees the investment
management industry, including
mutual
funds
and investment advisers who manage
over $25 million in assets.
The Division
of Enforcement enforces the rules by investigating,
recommending legal or other action by the Commission,
and negotiating settlements.
Rulemaking and enforcement
are assisted by the Commission’s Office of Compliance
Inspections and Examinations, which examines companies,
brokers, and the securities markets for sound business
practices.
Around the table The SEC has 5 commissioners appointed by the president of the U.S. and confirmed by the Senate, one of whom serves as chair. Each commissioner serves a 5-year term, with one term expiring each year. By law, no more than 3 commissioners may be from the same political party. But positions can be — and sometimes are — left unfilled. There’s also a staff of about 3,100 employees including attorneys, investigators, and administrators to handle the work.
