SEC
SECAlso called securities and Exchange Commission, US SEC
The Securities and Exchange Commission is the US federal regulator for securities markets. It oversees exchanges, broker-dealers, investment advisers, investment funds and public company disclosure. Its mission is to protect investors, maintain fair, orderly and efficient markets and facilitate capital formation. Congress created it under the Securities Exchange Act of 1934.
How it works
The SEC is led by five presidentially appointed commissioners. It writes rules, reviews company filings and examines registered firms through its examinations division. Broker-dealers are also overseen by FINRA, a self-regulatory organisation under SEC supervision. The SEC's enforcement division brings civil actions in federal court or administrative proceedings, seeking penalties, disgorgement and industry bars.
SEC rules drive significant regtech spending. Rule 17a-4 recordkeeping requirements underpin communications archiving and surveillance. Amendments to Regulation S-P adopted in May 2024 require incident response programmes and customer breach notices within 30 days. Investment advisers need compliance programmes reviewed annually. Public companies face disclosure and internal control duties under the Sarbanes-Oxley Act.
The rules
Created the SEC and gave it powers to register, regulate, examine and take enforcement action against securities market participants.
US exchanges, broker-dealers, public companies and other market participantsRequires an incident response programme and notice to affected individuals within 30 days of unauthorised access to sensitive customer information.
Broker-dealers, investment companies, registered investment advisers and transfer agentsRequires broker-dealers to preserve business records, including communications, in a compliant electronic recordkeeping system. The 2022 amendments applied from 3 May 2023.
SEC-registered broker-dealersCommon questions
What does the SEC regulate?
It regulates securities exchanges, broker-dealers, investment advisers, mutual funds and other investment companies, transfer agents, clearing agencies and the disclosures of public companies. Commodity futures fall under the CFTC instead.
What is the difference between the SEC and FINRA?
The SEC is the federal government regulator. FINRA is a self-regulatory organisation that writes and enforces rules for broker-dealers, under SEC oversight. Most broker-dealers must be FINRA members.
What powers does the SEC have?
It can adopt rules, examine registered firms, subpoena records, and bring civil enforcement actions seeking penalties, disgorgement, injunctions and bars. It refers criminal matters to the Department of Justice.
What are the Regulation S-P compliance dates?
Larger entities had to comply 18 months after Federal Register publication and smaller entities 24 months after, which fell in December 2025 and June 2026.
