Securities and Exchange Commission
If you’re looking for an agency that oversees securities, then you’ll want to read about the Securities and Exchange Commission (SEC). This independent federal agency was founded in the wake of the 1929 Wall Street crash. Its main goal is to protect investors and market participants by enforcing laws that prohibit market manipulation. This article will cover topics such as the EDGAR system, enforcement division, and Corporation finance.
PUHCA
The Public Utility Holding Company Act (PUHCA) was passed by Congress in 1935 and was designed to help utilities manage and separate their business operations. It requires that utilities seek approval from their state regulators before they can issue major securities, and it closely monitors the issuance of those securities. Most states also require utilities to have a bond cov enant in place, which helps them avoid overcapitalization. In the years since, the PUHCA has been revised several times, but three areas remain a source of concern:
EDGAR system
The EDGAR system for securities and exchange commission (SEC) filings is used by publicly-traded companies to file required documents with the SEC. It also allows users to retrieve submission information, update company information, and request refunds.
Enforcement division
The Enforcement Division of the Securities and Exchange Commission is tasked with bringing enforcement actions against market participants that fail to disclose material information. In particular, the division is focused on SPAC transactions. In such cases, the SEC will focus on the disclosures that companies make regarding conflicts of interest, the economic interests of SPAC sponsors, directors, and officers, and the companies’ internal controls.
Corporation finance
The Securities and Exchange Commission (SEC) is a federal agency that regulates the financial markets. The Division of Corporation Finance oversees the filing of disclosure documents by companies and makes recommendations to the Commission regarding the rules and regulations related to this area. The SEC’s other divisions include the Division of Trading and Markets, which develops standards for the securities markets and monitors the major industry players.
Economic and risk analysis
The Division of Economic and Risk Analysis (DERA) provides economic advice to the Commission. Its statutory mission is to promote efficient and fair markets, investor protection, and capital formation. It focuses on these objectives through sound economic analysis and rigorous data analytics.
Law school clinics
Students can get valuable hands-on experience by participating in securities and exchange commission clinics at law schools. Students in the clinic will work on a case, transaction, or policy project and will perform a variety of tasks such as interviewing clients and witnesses, drafting pleadings and contracts, and conducting trials. Students can also get a feel for the workings of the SEC and learn how to avoid legal problems related to the industry.
