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SEC Relation With Different Agencies

In this article, we are going to study the SEC relation with different agencies. The securities exchange commission works and with various self regulatory organizations like the New York Stock Exchange, (NYSE) and the National Association Of Securities Dealers (NASD). Apart from these organizations, there is a relation between SEC and different agencies of various types such as the state securities regulators, federal agencies, international securities agencies and law enforcement agencies.

The President's Working Group on Financial Markets in 1988 was constituted when executive order number 12631 was passed. This group is headed by the secretary of the treasury and it also includes other members like the chairman of the Securities and Exchange Commission, the chairman of the Federal Reserve and the chairman of the commodity futures trading commission. Its main objective is to increase the integrity, efficiency, orderliness and competitiveness in the financial markets and thus preserving confidence of investors in financial markets.

Originally, the Federal Trade Commission, also known as FTC used to supervise the 1933 Securities Act. The 1934 Securities Exchange Act transferred this responsibility from Federal Trade Commission it to the Securities and Exchange Commission. The major objective of Federal Trade Commission is to encourage consumer protection and to uproot the anti competitive business practices. It also works towards regulating the general business practices, whereas the SEC is more concerned towards the securities markets.

In the year 1975, the establishment of the Municipal Securities Rulemaking Board was undertaken by the Congress in order to formulate rules and regulations for the business involved in subventing and trading municipal securities. This agency is also observed by the Securities and Exchange Commission. However, the important point to note down here is that the MSRB does not have the any authority to implement its rules on its own.

The Securities and Exchange Commission also has a relation with the federal and state law enforcement agencies and they work in tandem to implement actions against those parties who violates the securities laws. Apart from securities exchange commission relation with different agencies, it is also associated with the International Organization of Securities Commissions (IOSCO). It is one of its members and makes use of its Multilateral Memorandum of Understanding and direct bilateral agreements with other nation’s securities commissions in order to handle the cases of cross border misconduct in securities markets.

We hope that you find the above stated information describing Securities and Exchange Commission relation with different agencies useful.