For the third year in a row the Securities and Exchange Commission has published an annual review of the past year, the primary focus being financial results. The document is a nice summary of just about everything the SEC did last year. As with any federal agency, the SEC is constantly under scrutiny of both the public and elected officials as they do very important work in monitoring and enforcing the securities industry.
The report includes a mission statement along with the agency’s vision for its operational approach:
Mission: The mission of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
The SEC strives to promote a market environment that is worthy of the public’s trust and characterized by:
- Transparent disclosure to investors of the risks of particular investments;
- Oversight of key market participants, including exchanges, brokers and dealers, investment advisers, and others;
- Focus on strengthening market structure and systems;
- Promotion of disclosure of market-related information;
- Protection against fraud and abuse; and
- Evaluation, development and maintenance of appropriate rules and regulations.
The SEC should be lauded for the work it sets out to do. The over 4000 employees help keep the markets operating efficiently and assure the propriety of a highly complex world of securities. The regulations it is largely tasked with enforcing are usually heaped upon it by elected officials. Massive laws such as Dodd-Frank have tapped the energy of an agency already swamped with plenty to do. As for the JOBS Act, Chair White mentions it in her opening statement saying;
“We continued to focus on advancing rulemakings required under the Dodd-Frank Wall Street Reform and Accountability Act (Dodd-Frank) and Jumpstart Our Business Startups (JOBS) Acts…In FY 2014, the Commission advanced the major rules required by the JOBS Act, including proposed rules to permit companies to raise funds through crowdfunding, and rules that create an exemption from registration under the Securities Act that will make it easier for smaller companies to raise capital.”
While few may actually read this report for those of you so inclined it is interesting to contrast a bit the SEC’s pressing mandate to protect investors and assure efficient markets with that of its sibling Financial Conduct Authority (FCA) in the UK. While the FCA shares in its mission of enforcement and market efficacy, its mandate includes the goal of fostering competition. Perhaps the SEC should review its mission in 2015 and consider adding to its list of objectives; “to promote effective competition in the interests of consumers”.
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