Federal Securities Legislation Flashcards
Requires registration of initial public offerings
Securities Act of 1933
Prohibited financial institutions from consolidation and offering any combination of traditional commercial banking, investment banking (brokerage firms), and insurance
Glass-Steagall Act of 1933
Requires companies with previously issued securities to keep information current; created the SEC to enforce securities laws; requires brokers and dealers to register with the SEC
Securities Exchange Act of 1934
Brought the OTC market under the regulation of the SEC and called for self regulation of OTC securities dealers
Maloney Act of 1938
As amended in 1978, provides for the liquidation of hopelessly troubled firms and provides for the reorganization of troubled firms that might be able to survive
Federal Bankruptcy Act of 1938
Extended securities laws to investment companies / mutual funds
Investment Company Act of 1940
Requires registration for and regulates activities of investment advisers
Investment Advisers Act of 1940
Made it clear that insurance was to be regulated at the state level as long as the states implemented and executed this regulation adequately
McCarren-Ferguson Act of 1945
Established the Securities Investor Protection Corporation (SIPC); Insures customer’s accounts up to $500,000 in securities and cash, with a limit of $250,000 of cash coverage (in the event of the failure of a brokerage firm)
Securities Investor Protection Act of 1970
Specified what constitutes the insider trading of securities and stiffened the penalties for engaging in such trading
Insider Trading and Securities Fund Enforcement Act of 1988
Addresses the manners in which financial institutions manage the private information of individuals; released the Glass-Steagall Act of 1933
Gramm-Leach-Bliley Act of 1999
Requires broker-dealers (among others) to have internal policies and procedures, and controls to meet the know your customer mandate as an effort against funding terrorism by money laundering
USA PATRIOT Act of 2001