GPs-Financial Industry & Regs

Question 1

Securities Exchange Commission (SEC)

Answer 1

• Regulates inv offerings & companies
• Est’d w Inv Securities Act of 1934

Question 2

Federal Reserve System

Answer 2

Central bank of the United States

•12 regional banks
•Federal Open Market Committee
•Federal Reserve Board

Goals: affect monetary system to support full employment and 2% inflation

Question 3

Office of the Comptroller of the Currency (OCC)

Answer 3

Charters, supervises and regulates, national banks and savings and loans.

Question 4

Securities act of 1933

Answer 4

Required a written prospectus for all new investment offerings

Question 5

Investment advisors act of 1940

Answer 5

•Added to SEC’‘s responsibilities, regulating investment, visors, and their activities
•Defined Investment advisor: advises as a business for compensation .. ABC

Question 6

Securities investor Protection Act of 1970

Answer 6

From its creation by Congress in 1970, SIPC advanced $3.1 billion in order to make possible the recovery of $141.8 billion in assets for an estimated 773,000 investors.

https://www.sipc.org/about-sipc/history#:~:text=From%20its%20creation%20by%20Congress%20in%201970%2C%20SIPC%20advanced%20$3.1%20billion%20in%20order%20to%20make%20possible%20the%20recovery%20of%20$141.8%20billion%20in%20assets%20for%20an%20estimated%20773%2C000%20investors.

Question 7

FDIC insurance coverage

Answer 7

$250k per person per account type
•Liquid time deposits
•IRA
•Joint accounts -max 250k for THAT person even if they have 100 joint accounts