SEC Structure and Responsibility

Author: Lynn Fountain

CPE Credit:  2 hours for CPAs

The U.S. Securities and Exchange Commission (SEC) was founded by President Franklin D. Roosevelt in 1934. It was created by Section 4 of the Securities Exchange Act of 1934. It is comprised of a large independent agency of the United States federal government that was created following the stock market crash in the 1920s to protect investors and the national banking system. The primary purpose of the SEC is to enforce the law against market manipulation.

The SEC created has created a host of regulation which they enforce:
• The Securities Exchange Act of 1933
• The Securities Exchange Act of 1934
• The Trust-Indenture Act of 1939
• Investment Company Act of 1940
• Investment Advisers Act of 1940
• Gramm-Leach Bliley Act of 1999
• The Sarbanes-Oxley Act of 2002
• The Dodd-Frank Act of 2010
• Various other legislations

The SEC has a three-part mission:
• To protect investors
• Maintain fair, orderly, and efficient markets
• Facilitate capital formation

Learn more about specific SEC structure, functions and responsibilities carried out by various divisions and offices within the Washington D.C. headquarters and regional offices around the country.

This course focuses on the purpose and structure of the SEC and its role in financial accounting and reporting compliance for publicly traded companies. We will also do a high level introduction to various important forms to file with the SEC. A deep dive into many of these forms will be completed in a separate course.

Publication Date: April 2021

Designed For
Finance professionals, Accounting professionals, Auditing Professionals, Compliance Professionals, and Board and Executive management of public companies or companies considering an IPO.

Topics Covered

  • History and Structure
  • Structure and Purpose
  • SEC Act of 1933
  • SEC Act of 1934
  • IPO and Going Public
  • Forms

Learning Objectives

  • Describe the history and structure of the SEC
  • Recognize the structure and purpose of the various SEC divisions
  • Recognize the SEC Act of 1933 and 1934 and their relevance to public companies and IPO candidates
  • Recognize how to examine the various forms of communication methods used to communicate with the SEC
  • Differentiate between the Securities Act of 1933 and the Securities and Exchange Act of 1934
  • Describe the purpose of the Glass Stegall Act
  • Recognize the purpose of the Division of Corporate Finance of the SEC
  • Describe what an initial public offering represent

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
None

Advance Preparation
None

Registration Options
Quantity
Fees
Houston CPA Society, Chapter of Texas Society of CPAs Special Fee $46.50
Regular Fee $62.00

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