Federal Securities Legislation

Question 1

Securities Act 33

Answer 1

Registration of IPOs

Question 2

Securities Exchange Act 1934

Answer 2

Requires companies with previously issued securities to keep info current

Created SEC to enforce securities laws

BD must register with SEC

Question 3

Maloney Act 1938

Answer 3

Brought OTC market under regulation of SEC

Self regulation OTC securities dealers

Question 4

Federal Bankruptcy Act of 1938

Answer 4

Provides for liquidation of troubled firms and provides reorganization of firms that may be able to survive

Question 5

Investment Company Act of 1940

Answer 5

Extended securities laws in inv companies (mutual funds)

Question 6

Investment Advisers Act of 1940

Answer 6

Registration for and regulates activities of IAs

Question 7

McCarren Ferguson Act of 1945

Answer 7

Insurance to be regulated at the state level

States must implement and execute adequately

Question 8

SIPC of 1970

Answer 8

Established Securities Investor Protection Corp

Insures up to $500,000 in securities in cash ($250k limit for cash) in event of failure of brokerage firm

Question 9

Insider Trading and Securities Fund Enforcement Act of 1988

Answer 9

Specified definition of insider trading and stiffened penalties for engaging

Question 10

Gramm - Leach- Bliley Act of 1999

Answer 10

Addresses manners in which financial institutions manage the private information of individuals; repealed Glass-Steagall

Question 11

USA Patriot Act of 2001

Answer 11

Requires BD and others to have internal policies, procedures, and controls to meet the KYC mandate as an effort against funding terrorism by money laundering