Regulatory

Does the OCC have powers to close branches?

The Office of the Comptroller of the Currency (OCC) is an agency responsible for governing federal banks. The OCC charters, regulates, and supervises all national banks within the United States, including foreign banks. The OCC has the power to approve and deny new branches of banks, dismiss bank managers, and take legislative action based on their examinations, including issuing cease and desist orders.

What is the role of the Securities and Exchange Commission?

The Securities and Exchange Commission (SEC) is an agency of the United States government that regulates markets and investors. The SEC’s role is to enforce laws that promote fair, orderly, and efficient markets while maintaining a functioning economy. The SEC requires all issuers of stock to provide full disclosure regarding their business activity.

The SEC has the power to administer lawsuits against investors who break laws such as insider trading, accounting fraud, falsifying information, and more. The SEC is composed of 5 bi-partisan members who serve five-year terms.

How does the Securities and Exchange Commission protect investors?

The SEC’s role is to enforce laws that promote fair, orderly, and efficient markets while maintaining a functioning economy. The SEC protects investors by requiring all issuers of stock to provide full disclosure regarding their business activity.

What is the difference between FINRA and the SEC?

The SEC regulates markets and investors. The SEC’s role is to enforce laws that promote fair, orderly, and efficient markets while maintaining a functioning economy.

FINRA regulates trading involving equities, futures, options, and bonds. FINRA’s goal is to protect investors from abuses by brokers, and they maintain a database of approved broker-dealers that meet their standards. 

Who are members of FINRA?

The Financial Industry Regulatory Authority (FINRA) is an independent organization that enforces the rules that govern brokers and broker-dealer firms in the United States. FINRA regulates trading involving equities, futures, options, and bonds. FINRA is the authority for thousands of brokerages, and Individuals must register with FINRA if they are involved with the securities business at a brokerage firm.

What is SIPC insurance coverage?

SIPC insurance coverage was put in place to insure clients in the event a firm dissolves. The Securities Investor Protection Corporation (SIPC) is an independent organization established by Congress to protect investors whose brokerage firm has gone bankrupt. The SIPC’s sole focus is to reunite clients with their money. The SIPC includes brokers, dealers, and members of exchanges.

The SIPC has the authority to compensate investors up to $500,000 of their assets, and $250,000 of cash holdings, in the event the brokerage firm that holds their money files for bankruptcy. The SIPC does not protect customer accounts from investment losses but ensures that the customer’s assets are not lost or missing. 

Is SIPC as good as FDIC?

The primary difference between SIPC and FDIC is that SIPC only insures cash in accounts that are used for the purchase of securities while FDIC insures cash in depository accounts. 

Is SIPC coverage per account?

The SIPC has the authority to compensate investors up to $500,000 of their assets and $250,000 of cash holdings in the event the brokerage firm that holds their money files for bankruptcy. SIPC protection is dictated by “separate capacity,” so if multiple accounts are managed, they will each be eligible for full protection if they are not similar account types held in the same capacity.

For example, if two brokerage accounts are managed by the same investor, they receive $500,000 of protection combined. However, if the investor has an IRA account and a personal margin account, each account would receive $500,000 of protection. 

Who owns the Federal Reserve Bank?

The Federal Reserve Bank is not owned by any individual or organization. The Federal Reserve is the central bank for the United States. The Federal Reserve was created in 1913 to centralize the federal monetary system.

The function of the Fed is to regulate the United States financial system and national banks. The Federal Reserve reports to and is held accountable by Congress through a federal agency known as the Board of Governors.  

How many Federal Reserve banks are there?

The Federal Reserve system has 12 regional banks located throughout the country. The Federal Reserve is the central bank for the United States, and its function is to regulate the United States financial system and national banks.