${site.data.firmName}${SEMFirmNameAlt} Menu Contact
Call us toll free at
702-583-6748
Good People Deserve Good Lawyers. ®

What is the role of the SEC?

The U.S. Securities and Exchange Commission is a federal agency that oversees the enforcement of securities regulations. According to the SEC, its primary function is to monitor securities entities and prevent unfair dealing, promote the disclosure of relevant market information and protect against fraud. The agency enforces a number of federal laws, including the Securities Act, the Securities Exchange Act, the Sarbanes-Oxley Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act. 

Accounting fraud, the sale of unregistered securities, information misrepresentation and insider trading are examples of common infractions investigated by the SEC. When the agency receives evidence that securities laws may have been violated, its Division of Enforcement will conduct a private investigation. These probes can include witness interviews, a review of trading data and informal inquiries. Formal processes may also be utilized, such as subpoenas to testify and the required production of records and other business documents. 

If an investigation produces findings that the Commission deems sufficient, legal action can be initiated through administrative proceedings or in federal court. Administrative actions are overseen by administrative law judges and can result in monetary penalties as well as professional sanctions, such as the revocation of broker-dealer registrations. Civil actions in federal court can result in injunctions, monetary penalties and the required return of any profits made illegally. It is not uncommon for the SEC to initiate both administrative and civil proceedings.   

The SEC regularly collaborates with other agencies and institutions. These can include state securities regulators, other federal agencies and stock exchanges. When criminal charges are necessary, the SEC’s Division of Enforcement works with various law enforcement agencies.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Learn About Your Options.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Aldrich Law Firm, Ltd.
1601 South Rainbow Boulevard
Suite 160
Las Vegas, NV 89146

Toll Free: 877-508-0433
Phone: 702-583-6748
Fax: 702-227-1975
Map & Directions