Securities Law

What Are Securities Laws?

The securities laws are financial regulations which subjects certain financial institutions to comply with requirements, guidelines and restrictions. These laws aim to maintain financial system integrity. Securities laws are handled by government agencies or non-government agencies. These bodies of law can either be under federal or state.

What are Federal Securities Laws? Federal Securities Laws are made up of statutes which authorize a series of regulations. These are governed by government agencies with the general responsibility given to the Securities and Exchange Commission (SEC). There are two main statutes concerning Federal Securities: (1)The SA of 1933 and (2) The SEA of 1934.

What are State Securities Laws? While the overall organization overseeing securities exchange is the SEC, each state have their own body of rules and regulations. The Securities Commissioner is this regulatory body. Most of the States have the power to act as Commissioners who can pursue violators. Since every State has its securities act, locals have to be guided accordingly by these state laws.