Question

3. What government agency oversees the securities industry?

Answer 1

There are 2 main government agencies which are responsible for protection of investors which regulate and oversees the securities industry.

First one is The Securities and Exchange Commission (SEC)

The Securities and Exchange Commission (SEC) is the top regulatory agency responsible for overseeing the securities industry. It registers new securities and handles all the filings that public companies must make, such as annual and quarterly reports. The SEC also oversees all of the stock exchanges and any organization connected with the selling of securities. It also has a strong anti-fraud unit that monitors advertising and marketing to make sure companies comply with strict rules concerning the sale of securities.

Second is the Financial Industry Regulatory Authority (FINRA)

The Financial Industry Regulatory Authority (FINRA) was created in 2007 when the National Association of Securities Dealers merged with the regulatory functions of the New York Stock Exchange. This is an industry self-regulatory body that is responsible for policing the securities industry. FINRA set standards for stockbrokers and other industry professionals and licenses them after comprehensive examinations.