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Securities and Exchange Commission (SEC)
Since 1934· Agency
Law or rule (2026)Set by statute, regulation or the agency; numbers change yearly.
The federal regulator of securities markets, public companies, mutual funds, brokers and larger investment advisers.
See it on the Personal Finance & Estate map →How it works
The SEC, created by the Securities Exchange Act of 1934 after the 1929 crash, requires public companies and funds to disclose material facts and polices fraud in stocks, bonds and funds. It registers larger investment advisers, generally those managing over $100 million, while states oversee smaller ones; brokers answer to it through FINRA. Its free Investor.gov tools let you check an adviser's Form ADV, which discloses fees, conflicts and disciplinary history.
Why it matters for you
Its disclosure rules are why fund fees and risks are printed in prospectuses; checking Investor.gov before hiring anyone is a simple guard against investment fraud.
Rules, limits and sources (2026)
Its rules and enforcement actions are public on sec.gov; the Madoff fraud, exposed in 2008 after the SEC missed repeated tips, showed both its reach and its limits.
Watch out for
How far SEC authority extends over crypto assets remains contested; its 2025 leadership dropped most crypto cases while Congress writes new market rules.
Inside this (1)
Connections (3)
▸Securities and Exchange Commission (SEC) is the securities watchdog among Financial & consumer regulatorsLaw or rule (2026)
How they connect
Within the regulator map, the SEC covers investments: stocks, bonds, mutual funds, ETFs, brokers and investment advisers. It doesn't insure accounts, which is SIPC's job, or regulate fixed annuities, which state insurance departments do; variable annuities, being securities, fall under both.
When it applies
Created in 1934 after the 1929 crash, with Joseph Kennedy as first chairman; the Investment Advisers Act of 1940 added advisers.
The rule
The Securities Acts of 1933 and 1934 and the 1940 Acts define its jurisdiction; its rules and enforcement releases are on sec.gov.
Watch out for
Turf lines with the CFTC over crypto, and with the Labor Department and states over retirement advice, remain unsettled.
▸FINRA & BrokerCheck is overseen by Securities and Exchange Commission (SEC)Law or rule (2026)
How they connect
FINRA is a self-regulatory organization: a private nonprofit, funded by the industry, that licenses and disciplines brokers and brokerage firms under SEC oversight. The SEC approves FINRA's rules, inspects FINRA itself and can review its disciplinary decisions, so BrokerCheck records sit inside a federal framework.
When it applies
FINRA formed in 2007 by merging the NASD, founded in 1939, with the New York Stock Exchange's member regulation.
The rule
The Maloney Act of 1938 authorized self-regulatory bodies under the SEC; SEC orders approve each FINRA rule change.
Watch out for
Critics argue industry self-regulation is too lenient and that mandatory arbitration keeps disputes out of court; defenders cite expertise and speed.
▸Securities and Exchange Commission (SEC) sets the rules for Fiduciary duty vs. suitability (Reg BI)Law or rule (2026)
How they connect
The SEC wrote Regulation Best Interest for brokers and, the same day, published its interpretation of the fiduciary duty that investment advisers owe under the 1940 Act. It enforces both, alongside FINRA for brokers and state regulators for smaller advisers.
When it applies
Adopted in Washington on June 5, 2019, by a 3–1 vote, with Commissioner Robert Jackson dissenting; compliance began June 30, 2020.
The rule
The published Reg BI and Form CRS releases; the SEC brought its first Reg BI enforcement case in 2022.
Watch out for
Critics, including Jackson, said Reg BI lets conflicts continue under a friendlier name; supporters say it raised broker standards while keeping commission-based advice available.