As an aspiring securities professional, it’s important that you are familiar with the SEC Regulations. These regulations play a key role in the industry, and can affect your day-to-day work as a securities professional. In this blog post, we will discuss some of the most important SEC Regulations, including the Securities Act of 1933, the Securities Exchange Act of 1934, and the Securities Investor Protection Act of 1970. We’ll also provide definitions for key terms and explain how these regulations impact securities professionals.
Securities Act of 1933:
This act requires the registration of securities with the SEC and outlines the information that must be included in a registration statement. It also includes rules against false or misleading statements in a prospectus.
Section 7 of the Securities Act addresses the information required to be included in a registration statement, while Section 8 addresses when a registration statement becomes effective. Section 10 outlines the information that must be included in a prospectus, and Section 23 addresses unlawful representations made about securities.
One important regulation under the Securities Act is Rule 215, which defines an accredited investor as someone who meets certain income or net worth thresholds, allowing them to participate in certain investments not available to non-accredited investors. The Securities Act also includes Regulation S-K Item 501, commonly known as Schedule A, which lists the information required for registration statements for different types of securities. This impacts securities professionals by outlining the information that must be included in a registration statement or prospectus, and by defining who can participate in certain investments.
Securities Exchange Act of 1934:
This act includes regulations regarding the trading of securities and registration requirements for securities. It also establishes the self-regulatory organizations (SROs) that oversee brokerage firms and exchanges.
Section 3(a) of the Securities Exchange Act defines key terms and sets out how the title applies to different entities, while Section 12 addresses registration requirements for securities. Section 15 regulates brokers and dealers, and Section 15A addresses SROs.
Regulation D under the Securities Exchange Act includes rules governing limited offers and sales of securities without registration. The act also includes Regulation S-K Item 506, commonly known as Schedule B, which lists the information required for registration statements for different types of securities.
Securities Investor Protection Act of 1970 (SIPA):
This act established the SIPC, which protects customers of a failed brokerage firm by restoring missing assets and providing certain limited financial compensation.
It’s important to understand these SEC Regulations as they can affect your work in the securities industry. Studying for the SIE exam? Make sure you brush up on these regulations and any other relevant information. Achievable offers a free SIE practice exam to prepare you for the SIE Exam. Good luck on your exam!
As a securities professional, it’s crucial to have a solid understanding of SEC Regulations. These regulations play a crucial role in the industry and can impact your daily work. Make sure to familiarize yourself with these important regulations, and consider studying them as part of your SIE exam prep.