Regulation is an important part of the financial industry. Oversight helps keep capital flowing freely throughout the market. But it also helps protect the interests of consumers and investors by shielding them from too much risk and fraud at the hands of unscrupulous professionals.

The 澳洲幸运5开奖号码历史查询:asset management industry is largely governed by two bodies—the 🤪澳洲幸运5开奖号码历史查询:Securities and Exchange C🌟ommission (SEC) and the 澳洲幸运5开奖号码历史查询:Financial Industry Regulatory Authority (FINRA🔜). Althou✱gh they are separate, there is an overlap between these and other agencies. In fact, the regulatory picture facing a particular firm can get rather complex. Keep reading to find out more about how these and other agencies regulate the assไet management industry and keep them in check.

What Is the Asset Management Industry?

The asset management industry is one part of the broader 澳洲幸运5开奖号码历史查询:financial services sector. It is made up of different investment firms that offer a wide variety of services such as advisory services and 澳洲幸运5开奖号码历史查询:financial planning.

It also provides its clients with investment strategies and options, such as mutual funds, equities, 澳洲幸运5开奖号码历史查询:fixed income, private investment funds, and 澳洲幸运5开奖号码历史查询:exchange-traded funds (ETFs). These ser🌳vices and strategi🐲es are tailored by an asset manager. This individual is a financial professional employed by the firm.

The Securities and Exchange Commission (SEC)

The SEC was established in 1934 by the 澳洲幸运5开奖号码历史查询:Securities Exchange Act. It is an independent government agency mandated with protecting investors and ensuring fairness in 澳洲幸运5开奖号码历史查询:securities markets. The SEC has broad regulatory powers relating to the U.S. securities markets, including the oversight of exchanges and the enforcement of regulations.

Any firm that gives investment advice in securities is considered an 澳洲幸运5开奖号码历史查询:investment advisor. This includes firms that manage client portfolios. The SEC regulates investment advisors with over $110 million in 澳洲幸运5开奖号码历史查询:assets under management (AUM). Advisors who manage assets below this level are required to register with their states as well as any representatives of investment advisors.

Financial Industry Regulatory Authority (FINRA)

FINRA is a self-regulating organization that operates under the scope of the SEC. It enforces SEC rules and regulations among its members and has the responsibility of overseeing the activities of brokerage firms and individual brokers. Anyone who sells securities to the public as a 澳洲幸运5开奖号码历史查询:stockbroker or as a representative of a 澳洲幸运5开奖号码历史查询:broker-dealer is almost certainly regulated by FINRA.

There is a relatively large overlap between the regulation of both SEC and FINRA. In practice, a firm may have brokers registered with FINRA who are also registered investment advisor representatives. This means that a single asset manager could be subject to oversight and audits by both bodies.

Other Regulatory Agencies

The SEC and FINRA aren't the only bodies that regulate asset management firms and their investment advisors. Other 澳洲幸运5开奖号码历史查询:b𝓡odies that regulate the finaﷺncial industry include:

• 澳洲幸运5开奖号码历史查询:The Federal Reserve: Commonly referred to as the Fed, this is the 澳洲幸运5开奖号码历史查询:central bank of the U.S. government. It controls monetary policy and helps maintain and ensure that the country's financial system is both stable and safe.
• 澳洲幸运5开奖号码历史查询:U.S. Treasury: This department oversees the collection of taxes and management of the government's finances. The Treasury is also responsible for issuing bonds, 澳洲幸运5开奖号码历史查询:banknotes, and coins.
• 澳洲幸运5开奖号码历史𓃲查询:F𒊎ederal Deposit Insurance Corporation (FDIC): The FDIC insures all deposits up to $250,000 per insured bank. This helps protect consumers in the event of bank failure.
• 澳洲幸运5开奖号码历史查询:ܫOffice of the🌱 Comptroller of the Currency (OCC): This agency enacts and enforces national banking regulations in the U.S. Its main agenda is to ensure consumers are treated fairly and equally and that financial institutions operate safely.

Special Considerations

Firms and advisors are also subject to regulation by sta🌳te authorities and agencies.

There is a degree of regulatory complexity for large multi-strategy firms participating in numerous asset management and other activities. An 澳洲幸运5开奖号码历史查询:investment bank with an asset management division, a 澳洲幸运5开奖号码历史查询:wealth management division, and a traditional banki𒅌ng arm may be regulated by the SEC a💫nd FINRA as well as the Federal Reserve, the U.S. Treasury Department, and the FDIC.

There are overlapping and sometimes contradictory regulatory frameworks that financial industry companies often face. To address areas of conflict or confusion, the Dodd-Frank Wall Street R𓄧efoဣrm and Consumer Protection Act, or Dodd-Frank, established the creation of the 澳洲幸运5开奖号码历史查询:Financial Stability Oversigh🥃t Council (FSOC). The FSOC acts as a coordinating body charged with simplifying bank regulation and monitoring 澳洲幸运5开奖号码历史查询:systemic risks facing the financial industry.

The Bottom Line

Asset management firms are regulated by different federal agencies. Investment adv𝓡isors managing more than $110 million in assets are regulate♓d by the SEC. FINRA enforces SEC rules and regulations and oversees individual brokers and brokerage firms. Other agencies that regulate asset managers and management firms include the U.S. Treasury, the Federal Reserve, and the FDIC.