SEC: What You Need to Know?

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SEC What You Need to Know?
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What is SEC?

• The U.S. Securities and Exchange Commission (SEC)
  oversees the key participants in the securities
  world.
• Concerned with promoting disclosure of important
  market information, maintaining fair dealing, and
  protecting against fraud.
• Responsibilities include
• Interpret and enforce federal securities laws
• Issue new rules and amend existing rules
• Oversee inspection of securities firms, brokers,
  investment advisers and ratings agencies
• Oversee private regulatory organizations in
  securities, accounting, auditing fields
• Coordinate U.S. securities regulation with
  federal, state, and foreign authorities

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SEC Organization

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Laws Governing SEC

• Securities Act of 1933
• Securities Exchange Act of 1934
• Trust Indenture Act of 1939
• Investment Company Act of 1940
• Investment Advisers Act of 1940
• Sarbanes-Oxley Act of 2002
• Dodd-Frank Wall Street Reform and Consumer
  Protection Act of 2010
• Jumpstart Our Business Startups Act of 2012

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SEC Reports
Report Purpose
8K A report of unscheduled material events or corporate changes at a company that could be of importance to the shareholders or SEC
10K Comprehensive summary report of a company's performance. Submitted annually to the SEC.
10Q A comprehensive report of a company's performance that must be submitted quarterly by all public companies to SEC. In10-Q, firms are required to disclose relevant information regarding their financial position.
18K Use to update the SEC and investors regarding the status of a domestically traded foreign security and its issuer.
20F A form issued by the SEC that must be submitted by all "foreign private issuers" that have listed equity shares on exchanges in the U.S.
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SEC Investigations

• Can be triggered in many ways
• Investigation is not the same as prosecution
• Investigations involve fact finding and are
  usually not public
• During an investigation, neither the staff nor
  the Commission makes any determination of
  wrongdoing
• Following investigation, SEC staff present
  findings to the Commission
• Commission can authorize the staff to file a case
  in federal court or bring an administrative
  action.

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• Want to learn more about SEC laws, and best
  practices to comply with them? ComplianceOnline
  webinars and seminars are a great training
  resource. Check out the following links
• How to Comply with U.S. Securities and Exchange
  Commission Laws
• 2015 SEC Enforcement Initiatives and Controls to
  Defend Them
• SEC's New Whistleblower Rules Implications for
  Your Company's Compliance and Fraud Program
• New SEC Guidance on Sarbanes-Oxley Section 404
• SEC Whistleblowers and Responding to
  Whistleblower's Complaints