SEC Release IA-1092 provides standard interpretations for how laws apply to those that provide financial services.

Interpretive Release: Applicability of the Investment Advisers Act to Financial Planners, Pension Consultants, and Other Persons Who Provide Investment Advisory Services as a Component of Other Financial Services

SEC Release IA-1092 is a release from the Securities & Exchange Commission (SEC) that provides uniform interpretations of how state and federal adviser laws apply to those that provide financial services. The act reaffirmed the definition of an investment adviser (IA) as described in SEC Release IA-770 and added some refinements:
First, pension consultants and advisers to athletes and entertainers were included as providers of investment advice.
Second, in some cases, firms that recommend investment advisers also had to register themselves. SEC Release IA-1092 builds on the Investment Advisers Act of 1940 or the Advisers Act that Congress enacted to protect persons who rely on investment advisers for advice on purchasing and selling securities. Guidelines for the Investment Advisers Act of 1940 can be found in Title 15 section 80b-1 of the United States Code, which notes that investment advisers are of national concern, due to:
Their advice, counsel, publications, writings, analyses, and reports being in line with interstate commerce. The Investment Advisers Act of 1940 defines an investment adviser as any person who, either directly or indirectly through writings, engages in the business of advising others on the value or profitability of securities and receives compensation for this.

SEC Release IA-1092

A 10-K wrap is a summary report of a company's annual performance that bundles the 10-K report required by the SEC with additional commentary from the company.

A 10-K wrap is a summary report of a company's annual performance that bundles the 10-K report required by the Securities and Exchange Commission (SEC) with additional commentary from the company, covering such things as the corporate vision, letter to shareholders, and business overview, among other topics. A 10-K wrap is a summary report of a company's annual performance that bundles the 10-K report required by the Securities and Exchange Commission (SEC) with additional commentary from the company, covering such things as the corporate vision, letter to shareholders, and business overview, among other topics. The 10-K wrap document is usually no more than four pages long and could be even shorter, depending on what company executives want to see from the 10-K wrap report. The basic elements of a 10-K wrap typically include a summary of the company's financial results for the previous year and an overview of its plans for upcoming quarters, including spending and debt level forecasts. The basic sections of a 10-K wrap summarize the company's financial status, plus an overview of the company's financial plans for upcoming quarters.

10-K Wrap

The 2,000 investor limit is an SEC rule requiring that a company file financial reports if it exceeds 2,000 individual investors and $10 million in assets.

SEC Adopts Amendments to Implement JOBS Act and FAST Act Changes for Exchange Act Registration Requirements

Investor Bulletin: Crowdfunding Investment Limits Increase

The 2,000 Investor Limit is a stipulation required by the Securities & Exchange Commission (SEC) that mandates a company that exceeds 2,000 individual investors, and with more than $10 million in combined assets, must file its financials with the commission.﻿﻿ According to SEC rules, a company that meets these criteria has 120 days to file following its fiscal year's end. The individual limits for crowdfunding, through an investment portal approved by the SEC, as of May 2017:
If either your annual income _or_ your net worth is under $107,000, during any 12-month period, you can invest up to the greater of either $2,200 or 5 percent of the lesser of your annual income or net worth. If both your annual income and net worth are $107,000 or more during any 12-month period, you can invest up to 10 percent of your annual income or net worth, whichever is less, not to exceed $107,000. The 2,000 Investor Limit is a stipulation required by the Securities & Exchange Commission (SEC) that mandates a company that exceeds 2,000 individual investors, and with more than $10 million in combined assets, must file its financials with the commission.﻿﻿ According to SEC rules, a company that meets these criteria has 120 days to file following its fiscal year's end. The rules established limits on how much individuals can invest in SEC-approved crowdfunding platforms as a percent of the lesser of their annual income or net worth.

2000 Investor Limit

The 500 shareholder threshold is an outdated rule of the SEC that triggered public reporting requirements of a company. The threshold is now 2,000.

The 500 shareholder threshold for investors is an outdated rule required by the Securities and Exchange Commission (SEC) that triggered public reporting requirements of a company when it reached that many or more distinct shareholders. The 500 shareholder threshold for investors is an outdated rule required by the Securities and Exchange Commission (SEC) that triggered public reporting requirements of a company when it reached that many or more distinct shareholders. With the ascendancy of startup firms in the technology sector in the 1990s and 2000s, the 500 shareholder threshold rule became an issue for swiftly growing companies like Google and Facebook that desired to remain private even as it attracted more private investors. The 500 shareholder threshold was a rule mandated by the SEC that required companies to publicly disclose financial statements and other information if they achieved 500 or more distinct shareholders. Private companies generally avoid public reporting as long as possible by keeping the number of individual shareholders low, which is helpful because mandatory reporting can consume a great deal time and money and also places confidential financial data in the hands of competitors.

500 Shareholder Threshold

Companies are required by the Securities and Exchange Commission to file an 8-K to announce major events relevant to shareholders, such as an acquisition.

An 8-K is a report of unscheduled material events or corporate changes at a company that could be of importance to the shareholders or the Securities and Exchange Commission (SEC). Furthermore, investors do not have to watch TV programs, subscribe to magazines, or even wade through financial news websites to get the 8-K.
Form 8-K also provides substantial benefits to listed companies. An 8-K is a report of unscheduled material events or corporate changes at a company that could be of importance to the shareholders or the Securities and Exchange Commission (SEC). Also known as a Form 8K, the report notifies the public of events, including acquisitions, bankruptcy, the resignation of directors, or changes in the fiscal year. First and foremost, Form 8-K provides investors with timely notification of significant changes at listed companies.

8-K (Form 8K)

Accounting Series Releases (ASR) are official accounting pronouncements published by the Securities and Exchange Commission (SEC).

Accounting Series Releases (ASRs) are issued by the SEC as a means to help continually refine accounting requirements and principles in response to financial reporting issues. Accounting Series Releases (ASRs) are official accounting pronouncements published by the Securities and Exchange Commission (SEC). Along with being published in the SEC Docket, recent Accounting Series Releases may be posted on the SEC's website. The SEC has issued hundreds of Accounting Series Releases since ASR Number 1 was published in 1937.

Accounting Series Releases (ASR)

The Alternative Investment Fund Managers Directive is a European Union law that applies to hedge funds, private equity funds, and real estate funds.

The Alternative Investment Fund Managers Directive (AIFMD) is a European Union (EU) regulation that applies to alternative investments, many of which were left largely unchecked prior to the 2008-09 global financial crisis. The Alternative Investment Fund Managers Directive (AIFMD) is a regulatory framework that applies to EU-registered hedge funds, private equity funds, and real estate investment funds. After the global financial crisis hit, the EU made a move to regulate the alternative investment industry, particularly hedge funds, real estate funds, and private equity. Some of the requirements of the AIFMD include:
Business conduct including identifying conflicts of interest, fairness toward investors, full and complete disclosure, risk management, and remuneration
Minimum capital requirements including initial capital and total assets under management (AUM)
Marketing efforts directed solely at investors within the EU
How investments are safeguarded—through custodians and depositaries The institutional funds that fall under the AIFMD were previously outside of EU financial regulations for disclosure and transparency, including the Markets in Financial Instruments Directive (MIFID), which aimed to boost transparency across the union's financial markets.

Alternative Investment Fund Managers Directive (AIFMD)

Anti-money laundering refers to laws and regulations intended to stop criminals from disguising illegally obtained funds as legitimate income.

Cash payment report helps government combat money laundering

Information on Complying with the Customer Due Diligence (CDD) Final Rule

Anti-money laundering (AML) refers to the laws, regulations and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income. For example, AML regulations require banks and other financial institutions that issue credit or accept customer deposits to follow rules that ensure they are not aiding money-laundering. AML operates on a broader level: they are the measures institutions take to prevent and combat money laundering, terrorism financing and other financial crimes. AML compliance officers are often appointed to oversee anti-money laundering policies and ensure that banks and other financial institutions are compliant. It's up to financial institutions to monitor customer deposits and other transactions to ensure they aren't part of a money-laundering scheme.

Anti Money Laundering (AML)

The American National Standards Institute (ANSI) oversees the creation and dissemination of business norms and standards in the United States. 

The American National Standards Institute (ANSI) oversees the creation and dissemination of various standards and measures, including business norms and standards in the United States. Its mission is as follows:
> To enhance both the global competitiveness of U.S. business and the U.S. quality of life by promoting and facilitating volunary consensus standards and conformity assessment systems, and safeguarding their integrity.
The ANSI's membership is made up of more than 270,000 companies and organizations, and over 30 million professionals worldwide.﻿﻿﻿ For more information, check out the ANSI's website. The American National Standards Institute (ANSI) oversees the creation and dissemination of various standards and measures, including business norms and standards in the United States. The American National Standards Institute (ANSI) is a non-profit organization that coordinates standards and technical regulations that relate to how U.S. businesses, consumer groups, and government agencies function. Under the ANSI's supervision, the Accredited Standards Committee X9 (ASC X9) oversees the global financial services industry and is responsible for all financial-services standards in the U.S.

American National Standards Institute (ANSI)

Appellate courts hear and review appeals from legal cases that have already been heard in a trial-level or other lower court.

Appeals court grants Uber and Lyft a temporary reprieve following threats to shut down in California

Appeals Court Says Uber and Lyft Must Treat California Drivers as Employees

California Supreme Court rejects Uber, Lyft challenge to gig-work order

Appellate courts, also known as the court of appeals, are the part of the American judicial system that is responsible for hearing and reviewing appeals from legal cases that have already been heard in a trial-level or other lower court. Appellate courts, also known as the court of appeals, are the part of the American judicial system that is responsible for hearing and reviewing appeals from legal cases that have already been heard in a trial-level or other lower court. There are 13 appeals courts on the federal level, with each state having its own appeals court system, some of which include intermediate appellate courts. Overall, there are 13 appellate courts on the federal level⁠—12 district appellate courts and an appeals court for the Federal Circuit. In this instance, the appellate court decided that a previous ruling from a lower California court, affirming the constitutionality or legality of the state employment law, would be put on hold until it could evaluate the appeal and rule on its merits.

Appellate Courts

Arbitration is a mechanism for resolving disputes between investors and brokers, or between brokers.

Arbitration is a mechanism for resolving disputes between investors and brokers, or between brokers. Arbitration is not the same as filing an investor complaint, in which an investor alleges wrongdoing on the part of a broker, but has no specific dispute with that broker, for which the investor seeks damages. There are fees associated with filing for arbitration, not to mention the time and travel expenses involved, which investors should consider when pursuing this option.
Arbitration panels do not necessarily award the full amount sought in a dispute. When an investor or broker has a specific dispute with a broker that is registered with FINRA, they may file a claim with FINRA that states the alleged misconduct and the amount of money they are seeking in damages. Arbitration is distinct from mediation, in which parties negotiate to reach a voluntary settlement, and decisions are not binding unless all parties agree to them.

Arbitration

Average cost pricing rule is required by certain businesses to limit what amount they can charge consumers based on costs of production.

The average cost pricing rule is a standardized pricing strategy that regulators impose on certain businesses to limit what those companies are able to charge their consumers for its products or services to a price equal to the costs necessary to create the product or service. One bad thing about average-cost pricing is that marginal cost is less than average total cost meaning that price is greater than marginal cost. Average-cost pricing is well used as the basis for a regulatory policy for public utilities (especially those that are natural monopolies) in which the price received by a firm is set equal to the average total cost of production. Since regulators usually allows the monopoly to charge a small price increase amount above of cost, average cost pricing looks to remedy this situation by allowing the monopoly to operate and earn a normal profit. The average cost pricing rule is a regulatory requirement that a business charge its customers a maximum amount based on the average unit cost of production.

Average Cost Pricing Rule

Bank Insurance Fund (BIF) is a unit of the FDIC that provides insurance protections for banks that are not classified as a savings and loan association. 

Deposit Insurance Fund: Merger of Bank Insurance Fund and Savings Association Insurance Fund

Selected Sections of the Dodd-Frank Wall Street Reform and Consumer Protection Act

FDIC-Insured Institutions Reported Net Income of $55.2 Billion in Fourth Quarter 2019.

The Bank Insurance Fund (BIF) was a unit of the Federal Deposit Insurance Corporation (FDIC) that provided insurance protection for banks that were not classified as a savings and loan association. The primary purposes of the Deposit Insurance Fund (DIF) are as follows:
1.  To insure the deposits and protect the depositors of insured banks
2.  To resolve failed banks
The DIF is funded mainly through quarterly assessments on insured banks, but it also receives interest income on its securities. The Bank Insurance Fund (BIF) was a unit of the Federal Deposit Insurance Corporation (FDIC) that provided insurance protection for banks that were not classified as a savings and loan association. This led to the Federal Deposit Insurance Act of 2005, which abolished the Savings Association Insurance Fund and the BIF and created a single Deposit Insurance Fund. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the Dodd-Frank Act) revised the FDIC's fund management authority by setting requirements for the Designated Reserve Ratio (DRR) and redefining the assessment base, which is used to calculate banks' quarterly assessments.

Bank Insurance Fund (BIF)

A bank stress test is an analysis to determine whether a bank has enough capital to withstand a negative economic shock.

ECB to Stress Test 38 Euro Area Banks As Part of the 2021 EU-Wide Stress Test Led by EBA

Comprehensive Capital Analysis and Review: Objectives and Overview,

Santander, Deutsche Bank: U.S. Stress Test Repeat Offenders

A bank stress test is an analysis conducted under hypothetical scenarios designed to determine whether a bank has enough capital to withstand a negative economic shock. A bank stress test is an analysis to determine whether a bank has enough capital to withstand an economic or financial crisis. A bank stress test is an analysis conducted under hypothetical scenarios designed to determine whether a bank has enough capital to withstand a negative economic shock. Federal and international financial authorities require all banks of a specific size to conduct stress tests and report the results on a regular basis. Stress tests focus on a few key areas, such as credit risk, market risk, and liquidity risk to measure the financial status of banks in a crisis.

Bank Stress Test

The Basel Accord is a set of agreements on banking regulations concerning capital risk, market risk, and operational risk.

The Basel Accords are a series of three sequential banking regulation agreements (Basel I, II, and III) set by the Basel Committee on Bank Supervision (BCBS). The capital adequacy risk (the risk that an unexpected loss would hurt a financial institution), categorizes the assets of financial institutions into five risk categories—0%, 10%, 20%, 50%, and 100%.
Under Basel I The new tier 3 capital is defined as tertiary capital, which many banks hold to support their market risk, commodities risk, and foreign currency risk, derived from trading activities. Tier 1 capital is the most liquid and primary funding source of the bank, and tier 2 capital includes less liquid hybrid capital instruments, loan-loss, and revaluation reserves as well as undisclosed reserves. It focused on three main areas: minimum capital requirements, supervisory review of an institution's capital adequacy and internal assessment process, and the effective use of disclosure as a lever to strengthen market discipline and encourage sound banking practices including supervisory review.

Basel Accord

The Basel Committee on Banking Supervision is an international committee formed to develop standards for banking regulation; it is made up of central bankers from 27 countries and the European Union.

The Basel Committee on Banking Supervision (BCBS) is an international committee formed to develop standards for banking regulation; as of 2019, it is made up of Central Banks and other banking regulatory authorities from 28 jurisdictions. Instead, the Basel Committee on Banking Supervision seeks to provide a forum in which banking regulatory and supervisory authorities can cooperate to enhance the quality of banking supervision around the world, and improve understanding of important issues in the banking supervisory sphere. The Basel Committee on Banking Supervision (BCBS) is an international committee formed to develop standards for banking regulation; as of 2019, it is made up of Central Banks and other banking regulatory authorities from 28 jurisdictions. The Basel Committee on Banking Supervision was formed in 1974 by central bankers from the G10 countries, who were at that time working towards building new international financial structures to replace the recently collapsed Bretton Woods system. The BCBS was formed to address the problems presented by globalization of financial and banking markets in an era in which banking regulation remains largely under the purview of national regulatory bodies.

Basel Committee on Banking Supervision

Basel II is a set of banking regulations put forth by the Basel Committee on Bank Supervision, which regulates finance and banking internationally.

Basel II is a set of international banking regulations put forth by the Basel Committee on Bank Supervision, which leveled the international regulation field with uniform rules and guidelines. Basel II provides guidelines for calculation of minimum regulatory capital ratios and confirms the definition of regulatory capital and an 8% minimum coefficient for regulatory capital over risk-weighted assets. Basel II expanded rules for minimum capital requirements established under Basel I, the first international regulatory accord, and provided the framework for regulatory review, as well as set disclosure requirements for assessment of capital adequacy of banks. Minimal capital requirements play the most important role in Basel II and obligate banks to maintain minimum capital ratios of regulatory capital over risk-weighted assets. The main difference between Basel II and Basel I is that Basel II incorporates credit risk of assets held by financial institutions to determine regulatory capital ratios.

Basel II

The Bureau of Labor Statistics (BLS) is a government agency that produces a range of data about the U.S. economy.

The Bureau of Labor Statistics (BLS) is a federal agency that collects and disseminates various data about the U.S. economy and labor market. Its reports include the Consumer Price Index (CPI) and the Producer Price Index (PPI), both of which are considered to be important measures of inflation.
The Bureau of Labor Statistics (BLS) is an American government agency tasked with collecting and disseminating a range of economic and employment data.
The BLS is responsible for two key inflation indicators: the Consumer Price Index (CPI) and Producer Price Index (PPI). Some of the most important statistical releases published by the BLS include:
**The Consumer Price Index** (CPI): An aggregate of the prices of a relatively fixed basket of goods, which is used as a standard gauge of inflation and the cost of living.
**The Producer Price Index** (PPI): A measure of the average prices American producers receive for their goods and services.
**Local Area Unemployment Statistics** (LAUS): A range of localized data about labor efficiency and unemployment.
**The National Compensation Survey** (NCS): Produces comprehensive aggregates of workers' earnings across a variety of sectors.
**Current Population Survey** (CPS): Sponsored jointly with the Census Bureau When the Department of Commerce and Labor was renamed the Department of Commerce (DOC) in 1913, the BLS, along with other bureaus and agencies concerned with labor, was then transferred into the newly-created DOL, a US cabinet-level agency responsible for enforcing federal labor standards and promoting workers' wellbeing. The primary purpose of the BLS, an arm of the U.S. Department of Labor (DOL), is to research, assemble, and publish a range of statistical data on the labor market, prices, and productivity.

Bureau of Labor Statistics (BLS)

Blue sheets are requests sent by regulators to market makers and brokers for information on trading activity to spot fraud and insider trading.

Proposed Rule: Electronic Submission of Securities Trading Data by Exchange Members,Brokers and Dealers

Credit Suisse to Pay $4.25 Million and Admits to Providing Deficient 'Blue Sheet' Trading Data

SEC: Citigroup Provided Incomplete Blue Sheet Data for 15 Years

Blue sheets are formal requests for information sent out by the Securities and Exchange Commission (SEC) to market makers, broker-dealers, and/or clearinghouses. When regulators discover oddities in trading actions from blue sheet information, it can trigger a more thorough investigation that may require further reporting and records by banks and other financial institutions. Blue sheet information is used by the Financial Industry Regulatory Authority's (FINRA) Office of Fraud Detection and Market Intelligence to find and identify oddities in trading activity that could be insider trading. The questionnaires or requests for information sent by the SEC came to be known as blue sheets because they were printed on blue paper. Blue sheets are requests for transaction information by the SEC from financial institutions or trading firms.

Blue Sheets

The British Columbia Securities Commission (BCSC) is an independent government agency responsible for regulating securities trading in British Columbia, Canada.

Table of Contents
What Is the BCSC? Ontario Securities Commission
Prince Edward Island's Office of the Superintendent of Securities
Québec's Autorité Des Marchés Financiers
Saskatchewan's Financial and Consumer Affairs Authority
Yukon Territories' Office of the Superintendent of Securities
Like the U.S. Securities Exchange Commission and other global securities regulators, the BCSC seeks to maintain orderly and fair securities trading activities for all market participants within its jurisdiction. Some of its key regulatory oversight aspects include the following:
Ensuring public confidence in the securities market
Maintaining fairness and mitigating securities fraud
Maintaining a securities industry trading system that offers investment opportunities for both investors and businesses
Provides for capital market innovation
Maintain a market with integrity
Require accountability for transparency and reporting to the public
Facilitate a marketplace that is accommodative to evolving market changes
Receiving and reviewing registrations and disclosures as mandated by regulations
Maintaining central databases for regulatory filings
Taking enforcement actions when securities laws are breached
Educating investors and businesses Primary rules and regulations pertaining to the British Columbia financial market include the following:
The Securities Act R.S.B.C. 1996, c. 418
Securities Rules B.C. Reg. 194/97
Rule Making Procedure Regulation B.C. Reg. 195/97
Securities Regulation B.C. Reg. 196/97
Rules and regulations govern both the registration and reporting of publicly traded companies as well as the oversight of individual advisers. The 13 members representing Canada’s provinces and territories include the following (alphabetically):
Alberta Securities Commission
British Columbia Securities Commission
Manitoba Securities Commission

British Columbia Securities Commission (BCSC)

The United States Census Bureau is a division of the Bureau of Commerce that is responsible for conducting the national census at least once every 10 years.

The U.S. Census Bureau is a principal agency of the U.S. Federal Statistical System that is responsible for conducting the national census at least once every 10 years. Demographic surveys include the Decennial Census of Population and Housing, the American Community Survey (ACS), the Current Population Survey (CPS), the Survey of Income and Program Participation (SIPP), and the American Housing Survey (AHS).
Economic surveys include a survey of manufacturers, construction, mineral, services, financial, and insurance industries; surveys of minority- and women-owned businesses; among others. The U.S. Census Bureau is also responsible for producing data about the American population and surveys about the economy and economic activity. The U.S. Census Bureau is a principal agency of the U.S. Federal Statistical System that is responsible for conducting the national census at least once every 10 years. At that time, the census results revealed that 3,929,214 people lived in the country, with the three most populous states being Virginia (747,610), Pennsylvania (434,373), and North Carolina (393,751).﻿﻿﻿ A decennial census steadily expanded throughout the nineteenth century.
By the 1800s, the census collected vital information about the demographic, agricultural, and economic segments of the country as well.

U.S. Census Bureau

The Canadian Securities Institute is Canada's leading provider of professional credentials and compliance programs for the financial services industry.

The Canadian Securities Institute is Canada's leading provider of professional credentials and compliance programs for the financial services industry. Other courses offered by CSI include the following:
Conduct and Practices Handbook Course (CPH)
Wealth Management Essentials (WME)
Investment Management Techniques (IMT)
Portfolio Management Techniques (PMT)
Derivatives Fundamentals Course (DFC)
Options Licensing Course (OLC)
Futures Licensing Course (FLC)
Partners, Directors, and Senior Officers Course (PDO)
Branch Managers Course (BMC)
Canadian Commodity Supervisors Exam Course (CCSE)
Chief Compliance Officers Qualifying Examination (CCO)
Chief Financial Officers Qualifying Exam (CFO)
Options Supervisors Course (OPSC)
Branch Compliance Officer's Course (BCO)
Canadian Insurance Course (CIC)
Trader Training Course (TTC)
CSI also offers the following certificate programs:
Certificate in Commercial Credit
Certificate in Small Business Banking
Personal Financial Planner (PFP) designation
Certificate in Advanced Investment Advice
Certificate in Advanced Mutual Funds Advice
Certificate in Derivatives Market Strategies
Certificate in Equity Trading and Sales
Certificate in Fixed Income Trading and Sales
Certificate in Investment Dealer Compliance
Certificate in Technical Analysis
Chartered Investment Manager (CIM) designation
Fellow of CSI (FCSI)
Certificate in Banking Management
Certificate in Investment Dealer Compliance Its designations are recognized by the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Securities Administrators (CSA) with many designations required for securities industry activities in Canada’s provinces and territories. CSI offers the Canadian Securities Course (CSC), which is required for individuals who work as a registered representative in the Canadian securities industry. The Canadian Securities Institute provides licensing support for the Investment Industry Regulatory Organization of Canada, the Canadian equivalent to the Financial Industry Regulatory Authority (FINRA) in the U.S.

Canadian Securities Institute (CSI)

Capital requirements are standardized regulations for banks and other depository institutions that determine how much liquid capital (that is, easily sold assets) they must hold for a certain level of assets.

Capital requirements are standardized regulations in place for banks and other depository institutions that determine how much liquid capital (that is, easily sold securities) must be held _viv-a-vis_ a certain level of their assets. Also known as regulatory capital, these standards are set by regulatory agencies, such as the Bank for International Settlements (BIS), the Federal Deposit Insurance Corporation (FDIC), or the Federal Reserve Board (the Fed).
An angry public and uneasy investment climate usually prove to be the catalysts for legislative reform in capital requirements, especially when irresponsible financial behavior by large institutions is seen as the culprit behind a financial crisis, market crash, or recession. Created to ensure that the largest U.S. banks maintain enough capital to withstand systematic shocks to the banking system, Dodd-Frank—specifically, a section known as the Collins Amendment—set the tier 1 risk-based capital ratio of 4% mentioned above. Through this legislation and the support of major U.S., European and Japanese banks, the 1988 Basel Committee on Banking Regulation and Supervisory Practices announced that, for internationally active commercial banks, adequate capital requirements would be raised from 5.5% to 8% of total assets. Pros
Ensure banks stay solvent, avoid default
Ensure depositors have access to funds
Set industry standards
Provide way to compare, evaluate institutions
Raise costs for banks and eventually consumers
Inhibit banks' ability to invest
Reduce availability of credit, loans

Capital Requirements

Churning is excessive trading by a broker in a client's account in order to generate commissions. Discover more about the practice of churning here.

Investor Alert: Excessive Trading at Investor's Expense

Investor Alert: Excessive Trading at Investors’ Expense

Avoiding Fraud: Life Insurance Sales Practices

Table of Contents
What Is Churning?
Understanding Churning
Types of Churning
How to Prevent Churning
How to Prove Churning
Sanctions for Churning
Churning FAQs To back up a step, investors have a choice to make when opening an account with a broker:
An account that pays the broker a commission for each buy and sell order made for the account, or,
An account that pays the broker a flat-rate commission, usually ranging from 1% to 3% per year of the total assets under management.
Online or discount brokers charge a flat fee for every transaction, with zero fees common for certain transactions up to a limit. Churning is the illegal and unethical practice by a broker of excessively trading assets in a client's account in order to generate commissions.
While there is no quantitative measure for churning, frequent buying and selling of stocks or any assets that do little to meet the client's investment objectives may be evidence of churning. If you think your broker is churning, you can report it to the Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA).
The SEC defines churning as excessive buying and selling in a customer’s account that the broker controls in order to generate increased commissions. In the worst-case scenario, an investor could flee a commission-based broker to avoid excessing transaction fees, only to open an account with a flat-rate broker who does nothing but take a slice off the top of the account every year.

Churning

A compliance officer ensures a company complies with its outside regulatory requirements and internal policies.

Occupational Employment And Wages, May 2020. 13-1041 Compliance Officers

A compliance officer is an employee of a company that ensures the firm is in compliance with its outside regulatory and legal requirements as well as internal policies and bylaws. A compliance officer is an employee of a company that ensures the firm is in compliance with its outside regulatory and legal requirements as well as internal policies and bylaws. The compliance officer must work with business units and management to ensure appropriate contingency plans are in place that set guidelines on how to respond to a possible compliance breach. It is the compliance officer’s duty to ensure continual monitoring and review of compliance procedures to help identify possible areas where improvements could be made. A compliance officer is an employee of a company who helps that company maintain policies and procedures to remain within an industry's regulatory framework.

Compliance Officer

The compliance department ensures that a financial services business adheres to external rules and internal controls.

The compliance department ensures that a business adheres to external rules and internal controls. Recent topics addressed by compliance departments include conduct risk, Banks Secrecy Act and Anti-Money Laundering (BSA/AML) risk, subcontractor risk, and overall risk culture management. This caused financial services organizations to increase the role of the compliance department from advisory to active risk management and monitoring. The 2008 financial crisis led to increased regulatory scrutiny and regulation, leading compliance departments to go from an advisory role to active risk management. Compliance officers within the compliance department have a duty to their employer to work with management and staff to identify and manage regulatory risk.

Compliance Department

Congressional Oversight Panel (COP) was created by the U.S. Congress in 2008 to oversee for the U.S. Treasury's actions aimed at stabilizing the U.S. economy.

March Oversight Report—The Final Report of the Congressional Oversight Panel

The Final Report of the Congressional Oversight Panel

Troubled Asset Relief Program (TARP): Implementation and Status

The Congressional Oversight Panel (COP) was an oversight body that Congress created in 2008 to monitor the U.S. Treasury and its implementation of the $700 billion Trouble Asset Relief Program (TARP).
The panel was empowered to hold hearings, review data, and write reports on the efforts of the Treasury and other financial institutions as they worked to stabilize the economy in the midst of the 2007-2008 Financial Crisis.
The Congressional Oversight Panel was created by Congress to monitor the U.S. Treasury's implementation of the $700 billion Trouble Asset Relief Program (TARP). The panel's duties were to oversee the Treasury department's actions; assess the impact of spending to stabilize the economy; evaluate market transparency; ensure efforts to mitigate property foreclosures were effective; and ensure the Treasury took actions that were in the best interests of the public. It created of the Office of Stabilization within the Treasury department to implement TARP, and also the Congressional Oversight Panel to monitor these efforts. TARP was initially created as a $700 billion program to increase the liquidity of the secondary mortgage markets by purchasing illiquid mortgage-backed securities, and through that, reducing the potential losses of the institutions that owned them.

Congressional Oversight Panel (COP)

Consent solicitation is the process by which a security's issuer proposes changes to terms of a security agreement or corporate management.

Special Meetings and Consent Solicitations: How the Written-Consent Right Uniquely Empowers Shareholders

A consent solicitation is a process by which a security issuer proposes changes to the material terms of the security agreement. Consent solicitations can also refer to any proposed changes that a corporation's board wishes to enact outside of a company's shareholder meeting, seeking written consent from its shareholders to do so. Consent solicitations also refer to any corporate changes a company's board wishes to enact outside of the company annual meeting, seeking shareholder consent to do so. Given that mutual consent is usually required for such critical changes, the consent solicitation is usually a request for permission to make a change on behalf of the stakeholder. A consent solicitation is a process by which a security issuer proposes changes to the material terms of the security agreement.

Consent Solicitation

A deficiency letter is a letter issued by the SEC indicating a significant deficiency or omission in a registered statement or prospectus.

Compliance Examination Deficiency Letter Process

The Five Most Frequent Compliance Topics Identified in OCIE Examinations of Investment Advisers

A deficiency letter is a letter issued by the Securities and Exchange Commission (SEC) and indicates a significant deficiency or omission in a registration statement or prospectus. A deficiency letter is typically sent to registrants of intended public stock offerings, but in the case of an SEC examination, a deficiency letter may indicate deficiencies in an investment adviser’s regulatory compliance program. A deficiency letter is typically sent to registrants of intended public stock offerings, but in the case of an SEC examination, a deficiency letter may indicate deficiencies in an investment adviser’s regulatory compliance program. When an investment adviser receives a deficiency letter regarding regulatory compliance deficiencies, they will need to address the letter by improving their regulatory compliance program in the ways advised by the letter. A deficiency letter is a letter issued by the Securities and Exchange Commission (SEC) and indicates a significant deficiency or omission in a registration statement or prospectus.

Deficiency Letter

Dirks Test is a standard used by the SEC to determine if someone who receives and acts on insider information is guilty of illegal insider trading.

Dirks v. SEC - A Study in Cause and Effect

Investor Bulletin: Insider Transactions and Forms 3, 4, and 5

United States of America v. Mathew Martoma, Decided Aug. 23, 2017

The Dirks test (also referred to as the personal benefits test) is a standard used by the Securities and Exchange Commission (SEC) to determine whether someone who receives and acts on insider information (a tippee) is guilty of insider trading. The Dirks test (also referred to as the personal benefits test) is a standard used by the Securities and Exchange Commission (SEC) to determine whether someone who receives and acts on insider information (a tippee) is guilty of insider trading. The Dirks test looks for two criteria: 1) whether the individual breached the company's trust (broke rules of confidentiality by disclosing material nonpublic information) and 2) whether the individual did so knowingly.
Tippees can be found guilty of insider trading if they knew or should have known that the tipper had committed a breach of fiduciary duty. The Supreme Court ruled that a tipee may assume the insider's fiduciary duty to a corporation's shareholders not to trade on material nonpublic information if the tipee knows or should have known of the insider's breach. The Supreme Court ruled that a tipee assumes an insider's fiduciary duty to not trade on material nonpublic information if they knew or should have known of the insider's breach.

Dirks Test

The Division of Corporation Finance is housed within the SEC and oversees registered firms' disclosure practices.

The Division of Corporation Finance is a branch of the U.S. Securities and Exchange Commission (SEC) that has oversight of disclosure practices of registered firms that offer securities to the public. The Division of Corporation Finance's work also helps companies to provide more accurate information to investors and potential investors. The Division of Corporation Finance is a branch of the U.S. Securities and Exchange Commission (SEC) that has oversight of disclosure practices of registered firms that offer securities to the public. The Division of Corporation Finance helps guarantee accurate information, which is essential for markets to match stocks with the right investors. The Division of Corporation Finance reviews required documents issued to investors, including Form 10-K, Form 10-Q, proxy materials, and other ongoing filings.

Division of Corporation Finance

The Division of Enforcement of the Securities and Exchange Commission (SEC) investigates possible securities law violations.

SEC Division of Enforcement Publishes Annual Report for Fiscal Year 2020

SEC Announces Final Distribution in WG Trading Investment Fraud, Totaling Over $1 Billion Returned to Harmed Investors

SEC Issues Nearly $6 Million in Whistleblower Awards

The Division of Enforcement of the U.S. Securities and Exchange Commission (SEC) is responsible for investigating possible violations of securities laws and regulations. The most common securities law violations for 2020, according to the SEC website, include preventing potential fraud related to the COVID-19 pandemic, issuer disclosure and accounting violations, foreign bribery, manipulation of market prices, investment advisory issues, insider trading, broker-dealer misconduct, and securities offerings. Neither the SEC nor its Division of Enforcement has the authority to bring criminal charges against alleged violators, but either can recommend that federal or state prosecutors bring criminal charges. The Division of Enforcement of the U.S. Securities and Exchange Commission (SEC) is responsible for investigating possible violations of securities laws and regulations. The Division of Enforcement can bring civil actions against regulatory violators in U.S. District Court or in an administrative proceeding presided over by an independent administrative law judge.

SEC Division Of Enforcement

The Division of Investment Management, a division with the SEC, regulates investment management industry to protect retail investors.

The Division of Investment Management is a branch of the U.S. Securities and Exchange Commission (SEC) overseeing investment funds, professional fund managers, securities research analysts, and investment advisers.﻿﻿ The overarching goal of the Division of Investment Management is to protect retail investors from fraud and abuse within the investment industry. The Division Investment Management is charged with developing regulatory policies and overseeing the registration, disclosures, and advertising of several types of investment companies and their products, including the following:
Mutual funds, which are a basket of equities or securities in which various investors pool their money
Exchange traded funds (ETF)s, which contain securities that track an underlying index with the goal mirroring the index, such as the S&P 500
Variable insurance products, which are insurance products with an investment component embedded in them
Investment advisers, which perform various duties to help investors research, select, and invest in securities The Division of Investment Management is a branch of the U.S. Securities and Exchange Commission (SEC) overseeing investment funds, professional fund managers, securities research analysts, and investment advisers.﻿﻿ The overarching goal of the Division of Investment Management is to protect retail investors from fraud and abuse within the investment industry. The Division Investment Management acts under the authority of federal securities laws such as the Investment Company Act of 1940 and the Investment Advisers Act of 1940. The Disclosure Review and Accounting Office (DRAO) reviews investment and variable insurance filings such as initial registration statements, financial statements, and proxy statements, which are investor disclosures containing information related to upcoming decisions and changes within a company.

Division of Investment Management

The Employee Benefits Security Administration (EBSA) oversees and enforces provisions of the Employee Retirement Income Security Act of 1974 (ERISA).

U.S. Department of Labor Restores Over $3.1 Billion to Employee Benefit Plans, Participants, and Beneficiaries, the Most Ever

Employee Benefits Security Administration

Employee Benefits Security Administration: Enforcement Improvements Made but Additional Actions Could Further Enhance Pension Plan Oversight

EBSA oversees nearly 722,000 retirement plans, 2.5 million health plans, and other benefits plans in the amount of $10.7 trillion dollars.
The Employee Benefits Security Administration (EBSA) helps educate and assist over 155 million U.S. workers, retirees, and their families. The Employee Benefits Security Administration (EBSA) oversees and enforces provisions of the Employee Retirement Income Security Act of 1974 (ERISA). As an agency of the Department of Labor (DOL), EBSA is charged with enforcing the rules governing the conduct of plan managers, the investment of plan assets, the reporting and disclosure of plan information, the fiduciary provisions of the law, and workers' benefit rights. Simply put, the Employee Benefits Security Administration (EBSA) acts as a watchdog against the inappropriate activities of pension managers to ensure the safety of the assets of U.S. workers.

Employee Benefits Security Administration (EBSA)

The Environmental Protection Agency (EPA) is an agency of the United States federal government whose mission is to protect human and environmental health.

EPA too slow on limiting toxic chemicals, critics say

Criminal Investigations - Violation Types and Examples

Table of Contents
What Is the EPA? These programs include:
**The EPA Safer Choice program**—formerly Design for the Environment—a product-labeling program that allows consumers to select the chemically safest products available, without sacrificing function or quality
**The Energy Star program**, which helps consumers choose energy-efficient appliances
**The Smart Growth program**, which supports sustainable community development
**WaterSense**, which encourages efficiency in water use via high-efficiency toilets, faucets, and irrigation equipment
**The National Pollutant Discharge Elimination System**, which regulates the discharge of pollutants into U.S. waters
The EPA protects human health and the environment with programs such as Safer Choice and the National Pollutant Discharge Elimination System.
The EPA also runs programs to Understanding the EPA
Examples of EPA Programs
How the EPA Enforces Laws
What the EPA Doesn’t Do
Criticism of the EPA
EPA FAQs Established by President Nixon in December 1970, the EPA—a U.S. federal agency designed to protect human and environmental health— was created in response to heightened concerns about pollution and its negative externalities. To protect communities and the environment, the EPA works to enforce laws such as the Clean Air Act, the Safe Drinking Water Act, the National Environmental Education Act, and the Clean Water Act, some of which predate the formation of the agency itself.

Environmental Protection Agency (EPA)

Fair Funds for Investors is a provision that was introduced in 2002, under Section 308(a) of the Sarbanes-Oxley Act.

Public Compensation for Private Harm. Evidence from the SEC’s Fair Fund Distributions

The Fair Funds for Investors provision was introduced in 2002 under Section 308(a) of the Sarbanes-Oxley Act (SOX). Prior to the Fair Funds Provision, money recovered by the Securities and Exchange Commission (SEC) in the form of civil penalties levied against regulatory violators was disbursed to the U.S. Treasury; the SEC did not have the right to distribute these funds back to investors who were victimized. Prior to the Fair Funds Provision, money recovered by the Securities and Exchange Commission (SEC) in the form of civil penalties levied against regulatory violators was disbursed to the U.S. Treasury; the SEC did not have the right to distribute these funds back to investors who were victimized. The Fair Funds for Investors provision has compensated investors who have been victimized by collusion between funds and brokers, interest-rate fixing, undisclosed fees, false advertising, late trading, pump-and-dump schemes, mutual fund market timing, and other forms of securities fraud and manipulation. Most investors who receive Fair Funds distributions get no compensation from private litigation for this reason; the Fair Funds provision, however, provides their only means of access to compensation.

Fair Funds for Investors

The Federal Communications Commission (FCC) is an independent government agency that regulates all U.S. interstate and international communications.

Obscene, Profane and Indecent Broadcasts—OBINC

The Federal Communications Commission in the Biden Administration: Issues and New Directions

PN1362 — Brendan Carr — Federal Communications Commission

PN2050 — Geoffrey Adam Starks — Federal Communications Commission

Groups urge Biden to nominate FCC commissioner to speed net neutrality reinstatement

Table of Contents
Expand The agency is accountable to U.S. Congress and its actions are monitored closely by investors.
The FCC is an independent U.S. government agency that answers to the United States Congress. FCC Regulations
FCC Approvals
The FCC Under President Biden
The Bottom Line The term Federal Communications Commission (FCC) refers to an independent U.S. government agency that oversees all interstate and international communications. Its mission is to help advance the global communications industry through:
economic support to ensure there is enough competition in the communications sector
the revision of media regulations to allow new technologies to thrive
the promotion of competition, innovation, and capital investment in broadband networks
the strengthening of the national communication infrastructure

Federal Communications Commission (FCC)

Federal agencies are special government organizations set up for a specific purpose such as resource management, financial or national security.

Full Faith and Credit of U.S. Government Behind the FDIC Deposit Insurance Fund

Federal agencies are special government organizations set up for a specific purpose such as, the management of resources, financial oversight of industries, or national security issues. GSEs include the Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage (Freddie Mac), Federal Farm Credit Banks Funding Corporation, and the Federal Home Loan Bank (FHLB). Federal agency bonds, which are bonds that are backed by the full faith and credit of the United States government, are examples of federal agency securities. Examples of federal agencies that guarantee certain bonds or securities include the Federal Housing Administration (FHA), Small Business Administration (SBA), and Government National Mortgage Association (GNMA or Ginnie Mae). Because federal agency bonds are less liquid than Treasury bonds, they offer a slightly higher rate of interest than Treasury bonds.

Federal Agencies

A federal covered advisor manages client assets in excess of $110 million.

Regulation of Investment Advisers by the U.S. Securities and Exchange Commission

Investor Bulletin: Transition of Mid-Sized Investment Advisers from Federal to State Registration

Final Rule: Exemption for Certain Investment Advisers Operating Through the Internet

A federal covered advisor is an investment advisor in the United States that is registered with the U.S. Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940. If a mid-sized advisor is not required to register in-state, then the advisor must register with the SEC (unless an exemption applies).
Additionally, mid-sized advisors based in New York or Wyoming are required to register with the SEC (unless an exemption applies).
**Large Advisors.*Any advisor with more than $110 million in AUM must register with the SEC, unless an exemption is available. A federal covered advisor is also referred to as a federal covered investment advisor, a federal covered adviser, or an SEC-registered investment adviser. However, the advisor may register with the SEC, or may be required to register with the SEC, if certain asset thresholds are met. A federal covered advisor is an investment advisor in the United States that is registered with the U.S. Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940.

Federal Covered Advisor

Financial Institutions and Prudential Policy (FIPP) Unit is a research division within the Centre for European Policy Studies. 

Can responsible investing encourage retail investors to invest in equities?

Recovery and Resilience Reflection Group (RRRG)

This unit is responsible for conducting research in the following areas:
Regulation and the supervision of financial institutions and financial stability
Investigating size, diversity, and innovation in the European financial sector
Internal markets for financial services
Positioning of small, regional, and international financial centers The organization conducts research, providing policymakers with insight and solutions in a variety of fields, including the economy, financial industry, markets, and trade, energy, and climate-related issues, education, foreign policy, and legal issues. The term Financial Institutions and Prudential Policy (FIPP) Unit refers to a division within the Centre for European Policy Studies. The CEPS is an independent think tank that conducts research and provides European Union leaders with insight and policy solutions.

Financial Institutions and Prudential Policy (FIPP) Unit

The Federal Housing Finance Agency (FHFA) is a U.S. government agency that regulates the secondary mortgage market.

Having a Problem With a Financial Product or Service?

FHFA Releases 2020 Performance and Accountability Report

The Federal Home Loan Bank System: Bank Membership

The Federal Home Loan Bank System: ​What the Federal Home Loan Bank System Does

Table of Contents
Expand The FHFA also regulates Fannie Mae and Freddie Mac, the two largest government-sponsored mortgage enterprises.
The FHFA now handles the work that was previously done by the Office of Federal Housing Enterprise Oversight and the Federal Housing Finance Board. It seeks to maintain credit availability and prevent foreclosure for all mortgages.
2.  It works to lower risk to taxpayers by elevating the part private capital plays within the mortgage market.
3.  It strives to create a new securitization infrastructure for single-family homes through Fannie Mae and Freddie Mac, which can be modified in the future for use in the secondary market.
Mortgage lending discrimination is illegal. Together with Fannie Mae and Freddie Mac, the Federal Home Loan (FHL) banking system offers more than $6.6 trillion to fund U.S. financial institutions and mortgage markets. The Federal Housing Finance Agency (FHFA) is a U.S. regulatory agency that oversees the secondary mortgage market.

Federal Housing Finance Agency (FHFA)

A final prospectus is the final and complete version of a prospectus for a public offering of securities. 

Registration Under the Securities Act of 1933

Information Available to Investment Company Shareholders

A final prospectus is the final version of a prospectus for a public offering of securities. Common details include the fund’s investment objective, investment strategy, risks, fees and expenses, performance, information about the fund’s investment advisers and portfolio managers, and procedures for purchasing and redeeming shares.
Transparency and investor awareness are two key aspects mandated by prospectus legislation. A key difference between a final prospectus and a preliminary prospectus is that the final prospectus contains the security's price. Mutual fund companies can file both a statutory prospectus and a summary prospectus. A final prospectus is the final version of a prospectus for a public offering of securities.

Final Prospectus

The Financial Conduct Authority is the regulator of the financial services industry in the United Kingdom.

As the regulator of the financial services industry in the United Kingdom, the Financial Conduct Authority (FCA) is responsible for the functioning of the U.K.'s financial markets. The Financial Conduct Authority (FCA) has three operational objectives in support of its strategic goal—to protect consumers, to protect and enhance the integrity of the U.K. financial system, and to promote healthy competition between financial services providers in the interests of consumers. As the regulator of the financial services industry in the United Kingdom, the Financial Conduct Authority (FCA) is responsible for the functioning of the U.K.'s financial markets. According to the FCA's website, the authority regulates the conduct of 59,000 financial services firms and financial markets in the United Kingdom. The Act of 2012 made major changes to the way financial services firms are regulated in the United Kingdom, and was introduced to ensure that the financial sector manages and contains risks more effectively following the financial crisis of 2008 to 2009.

Financial Conduct Authority (UK) (FCA)

Financial Services Agency, or FSA, is a Japanese government entity responsible for overseeing banking, insurance and securities and exchange.

Japan's Financial Sector Reform: Progress and Challenges

Japan's Financial Regulator Is Pushing Crypto Exchanges To Drop 'Altcoins' Favored By Criminals

Japan's FSA Orders Two Cryptocurrency Exchanges to Halt Business

Tokyo-Based Cryptocurrency Exchange Hacked, Losing $530 Million: NHK

Japan Regulators Order Coincheck to Tighten Security Measure After $500M Hack

Financial Services Agency, or FSA, is a Japanese government entity responsible for overseeing banking, insurance, and securities and exchange. The FSA handles planning and policymaking regarding Japan's financial system; supervision of private sector financial institutions; development of rules for trading in markets; development of business accounting standards; supervision of CPAs and auditing firms; compliance of rules in financial markets and more. As part of its oversight of the country's financial activities, Japan's Financial Services Agency has recently been taking a close look at cryptocurrency exchanges. The role of the Financial Services Agency is to ensure the stability of Japan's financial system; the protection of depositors, insurance policyholders, and securities investors. In April 2018 it was reported in Forbes that, in a bid to help prevent money laundering and stem criminal activity on the dark web, FSA was pressuring these exchanges to stop handling certain cryptocurrencies that are particularly favored by cybercriminals and computer hackers.

Financial Services Agency (FSA)

The Financial Services Authority was the financial services regulatory body in the United Kingdom until 2013.

What Is the Prudential Regulation Authority (PRA)?

Corporate Governance of the Financial Conduct Authority

Financial Services Act 2012: Financial Conduct Authority and Prudential Regulation Authority

The Financial Services Authority (FSA) was the agency that regulated financial services in the United Kingdom between 2001 and 2013. The decision-making body for the Prudential Regulation Authority is the Prudential Regulation Committee,﻿﻿ comprised of several members, including:
Governor of the Bank of England
Chief Executive of the Financial Conduct Authority
Deputy Governor for Financial Stability
Deputy Governor for Markets and Banking
Deputy Governor for Prudential Regulation
A member appointed by the Governor with the Chancellor’s approval
Five additional members appointed by the Chancellor Following the financial crisis of 2008, government officials decided to revise the regulatory structure of the financial markets in the U.K.
The Financial Services Authority was dissolved in April 2013.
Regulatory authority was divided into the Financial Conduct Authority and the Prudential Regulation Authority of the Bank of England. The Financial Services Authority (FSA) was formally established in the United Kingdom by the Financial Services and Markets Act 2000.﻿﻿ Originally established in 1985 as the Securities and Investments Board, the agency adopted the Financial Services Authority name in 1997 until it was dissolved in 2013. Financial Services and Markets Act laid out four primary objectives for the FSA, including encouraging market confidence in the U.K. financial system, public awareness and understanding of the U.K. financial system, securing adequate consumer protections, and reducing the incidence and impact of financial crime.

Financial Services Authority (FSA)

The Financial Stability Oversight Council (FSOC) is a council formed by the Dodd-Frank Act, charged with monitoring the financial system and its stability.

The Financial Stability Oversight Council (FSOC) was established in 2010 with the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The FSOC is responsible for monitoring any risks to the US financial sector associated with large banks or financial holding companies that helped to derail the economy during the Great Recession.
The FSOC grew out of the public outrage surrounding the financial service bailouts during the 2007 financial crisis and the belief that the banking and finance sectors need to be held accountable for their actions—that no entity should be “too big to fail.” The FSOC was established by the Dodd-Frank Act in 2010 as a way to protect the US economy from the actions of large banks that led to the Great Recession.
Many Americans were outraged in 2008 after the financial sector received a bailout from the US government; the FSOC helps hold these large institutions accountable. Beyond the economic stress many individual Americans faced due to the pandemic, the FSOC identifies some key areas of interest pertinent to economic stability including the historically high ratio of corporate credit to GDP, the commercial real estate market, the extreme volatility of financial markets, and potentially significant structural vulnerabilities remain in the short-term wholesale funding market. Additional tasks of the FSOC include increasing the discipline of financial markets in communicating the message that no institution is “too big to fail” and that the government will not prevent losses to the financial sector and shield such organizations from losses.

Sec and Regulatory Bodies

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Terms in Sec and Regulatory Bodies