Feb 3, 2016, 12:23 AM
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The EvoCity Securities and Exchange Commission (SEC) is an agency within the EvoCity federal government.
It holds primary responsibility for enforcing the federal securities laws, proposing securities rules, and regulating the securities industry, the nation's stock and options exchanges, and other activities and organizations, including the electronic securities markets in EvoCity.
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The enforcement authority it received enables the SEC to bring civil enforcement actions against individuals or companies alleged to have committed accounting fraud, provided false information, or engaged in insider trading or other violations of the securities law. The SEC also works with criminal law enforcement agencies to prosecute individuals and companies alike for offenses that include a criminal violation.
To achieve its mandate, the SEC enforces the statutory requirement that public companies submit quarterly and annual reports, as well as other periodic reports. In addition to annual financial reports, company executives must provide a narrative account, called the "management discussion and analysis" (MD&A), that outlines the previous year of operations and explains how the company fared in that time period. MD&A will usually also touch on the upcoming year, outlining future goals and approaches to new projects. In an attempt to level the playing field for all investors, the SEC maintains a database called EDGAR (the Electronic Data Gathering, Analysis, and Retrieval system) from which investors can access this and other information filed with the agency.
Quarterly and semiannual reports from public companies are crucial for investors to make sound decisions when investing in the capital markets. Unlike banking, investment in the capital markets is not guaranteed by the federal government. The potential for big gains needs to be weighed against equally likely losses. Mandatory disclosure of financial and other information about the issuer and the security itself gives private individuals as well as large institutions the same basic facts about the public companies they invest in, thereby increasing public scrutiny while reducing insider trading and fraud.
The SEC makes reports available to the public through the EDGAR system. The SEC also offers publications on investment-related topics for public education. The same system also takes tips and complaints from investors to help the SEC track down violators of the securities laws.
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Commission Members
Non-partisan, no more than three Commissioners may belong to the same political party. The President also designates one of the Commissioners as Chairman, the SEC's top executive. However, the President does not possess the power to fire the appointed Commissioners, a provision that was made to ensure the independence of the SEC.
Currently the SEC commissioners are:
- Dr. Eli Cohen - Chairman - Took Office 02/02/16
- Tim Austin - Commissioner - Took Office 02/02/16
The President of EvoCity nominated Eli Cohen to act as the first Chairman of the SEC. He was sworn in as Chairman on February 2, 2016.
Divisions
The SEC is split into five divisions.
These divisions are:
- Corporation Finance
- Trading and Markets
- Investment Management
- Enforcement
- Economic and Risk Analysis
Corporation Finance is the division that oversees the disclosure made by public companies, as well as the registration of transactions, such as mergers, made by companies. The division is also responsible for operating
EDGAR.
The Trading and Markets division oversees the regulation of the stock exchange. The division views proposed changes and monitors the operation of the financial market. Trading firms are bound by regulation of the SEC.
The Investment Management Division oversees registered investment companies.
The Enforcement Division works to investigate violations of the securities laws and regulations and to bring actions against alleged violators. The SEC generally conducts investigations in private. The SEC's staff may seek voluntary production of documents and testimony, or may seek a formal order of investigation from the SEC, which allows the staff to compel the production of documents and witness testimony.
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The Electronic Data Gathering, Analysis, and Retrieval system. All information that the SEC requires public companies to provide can be viewed here.
The Trading and Markets division oversees the regulation of the stock exchange. The division views proposed changes and monitors the operation of the financial market. Trading firms are bound by regulation of the SEC.
The Investment Management Division oversees registered investment companies.
The Enforcement Division works to investigate violations of the securities laws and regulations and to bring actions against alleged violators. The SEC generally conducts investigations in private. The SEC's staff may seek voluntary production of documents and testimony, or may seek a formal order of investigation from the SEC, which allows the staff to compel the production of documents and witness testimony.
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All operations carries out by the SEC including finalised reports and enforcement actions can be viewed here.