Who is responsible for overseeing the securities industry and enforcing securities laws?

The Securities and Exchange Commission (SEC) is the primary regulatory body responsible for overseeing the securities industry and enforcing federal securities laws. Its mission includes protecting investors, maintaining fair and efficient markets, and facilitating capital formation. The SEC has the authority to write rules and regulations that govern the securities markets, and it enforces compliance with those rules and regulations through inspections, investigations, and enforcement actions.

By establishing a framework for securities regulation, the SEC plays a crucial role in ensuring that investors receive accurate information and that market participants adhere to ethical standards. This oversight helps to maintain confidence in the financial markets, which is essential for their proper functioning.

While the Federal Reserve, U.S. Treasury Department, and FINRA all play significant roles in the financial system, their functions are distinct from those of the SEC. The Federal Reserve primarily manages monetary policy, the U.S. Treasury oversees federal finances and manages national debt, and FINRA is a self-regulatory organization focused on broker-dealer firms and their registered representatives. Each of these entities contributes to the overall functioning of financial markets, but the SEC is specifically tasked with the enforcement of securities laws.