REGULATION (ACTS, REGULATORS, RULES)

Securities Act of 1933

The FIRST federal securities law. Regulates the PRIMARY market and requires a prospectus.

Glass-Steagall Act (1933)

Created the FDIC and split commercial from investment banking. Repealed 1999.

Securities Exchange Act of 1934

Created the SEC. Regulates the SECONDARY market; bans insider trading.

Investment Company Act of 1940

Regulates mutual funds and investment companies.

Investment Advisers Act of 1940

Regulates RIAs - registration

SIPA (1970)

Created the SIPC.

ERISA (1974)

Standards for private retirement plans.

Sarbanes-Oxley (2002)

Response to Enron/WorldCom; created the PCAOB; CEO/CFO must certify financials.

Dodd-Frank (2010)

Response to the 2008 crisis; created the CFPB; contains the Volcker Rule.

JOBS Act (2012)

Eased capital-raising for startups; legalized equity crowdfunding.

Volcker Rule

Part of Dodd-Frank; limits banks from proprietary trading.

SEC

Securities and Exchange Commission - the federal agency overseeing the securities markets.

FINRA

The self-regulatory organization for broker-dealers; licenses reps and runs arbitration.

SIPC

Insures each brokerage customer up to $500

FDIC

Insures bank deposits up to $250

PCAOB

Oversees auditors of public companies; created by Sarbanes-Oxley.

MSRB

Regulates municipal-securities dealers.

CFTC

Regulates the futures market.

FASB

Sets GAAP accounting standards.

NCUA

Regulates credit unions.

CFPB

Consumer Financial Protection Bureau - protects consumers; from Dodd-Frank.

Insider trading

Illegally trading on confidential

Reg FD

Regulation Fair Disclosure - executives must disclose material info to everyone at the same time.

Reg BI

Regulation Best Interest (2020) - broker-dealers must act in the client's best interest.

Reg T

Regulation T - the 50% initial margin requirement.

Market abuse

Unethical practices like insider trading

Data breach

Customer information exposed by a leak or hack.

Direct compensation

Salary

Indirect compensation

Health insurance