If you’re looking to become a securities industry professional, you must familiarize yourself with the key pieces of legislation that govern the space. The Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and the Investment Adviser Act of 1940 are some of the most important federal laws when it comes to securities.
In this outline, we’ll provide an overview of these four Acts and discuss some of the key knowledge that every marketer needs to know to work in this field.
The Securities Act of 1933 was one of the first pieces of legislation to govern the securities industry. This Act was created in response to the stock market crash of 1929, and its primary purpose is to protect investors by requiring that companies provide full disclosure of information on all securities being offered for public sale. The Securities Act of 1933 also regulates the registration of securities offerings and imposes strict penalties on any individuals or organizations that engage in fraudulent or deceptive practices.
The Securities Exchange Act of 1934 was built on the foundation laid by the Securities Act of 1933 and remains one of the most important pieces of legislation when it comes to securities. This Act is designed to promote transparency in the marketplace by establishing regulations for all trading activity, as well as for exchanges and other securities dealers. Other key provisions of the Securities Exchange Act include requirements for price quotations to be publicly available and penalties for insider trading.
The Investment Company Act of 1940 is another key piece of legislation in the securities industry. This Act defines what constitutes a “security” for regulation, and sets forth specific requirements for investment companies, such as mutual funds. The Investment Company Act also regulates certain aspects of how mutual funds are managed, including diversification requirements and other rules to protect shareholders.
Finally, the Investment Adviser Act of 1940 is another critical piece of legislation in the securities industry. This Act governs all individuals and organizations that provide investment advice or recommendations to clients, such as financial planners, brokers, and investment advisers. The primary goals of this Act are to promote transparency and reduce conflicts of interest among those providing investment advice.
Whether you’re looking to pursue a career in marketing for the securities industry, or are simply interested in learning more about these important pieces of legislation, this outline provides an overview of key concepts and knowledge that every marketer needs to know about federal securities laws.
So whether you’re preparing for your SIE exam, or simply want to stay up-to-date on the latest trends in the field, this outline will help you deepen your understanding of these important laws and regulations. Additionally, Achievable offers comprehensive SIE exam prep to prepare you for the SIE Exam. Visit Achievable’s website, and you can feel confident in your ability to pass the SIE exam and begin your career as a securities industry professional.
