Securities Compliance: SEC Laws and Regulations

 The laws and regulations relating to securities compliance that are set and approved by SEC originate from the fact that all investors should have unlimited access to all information and facts about their investments ahead of purchasing them. These rules require companies to provide meaningful financial details to public which gives knowledge used by investors to decide whether to buy, hold, or sell various stocks, futures, bonds and other securities. Here are some acts that safeguard disclosures, investors and maintain a fair deal in the market.

The Securities Act of 1933

This law prohibits misinterpretation, deceit, and other forms of fraud during securities sales, as well as enforcing disclosure of financial and any other relevant information concerning the sale. Most securities are required to be registered with SEC and the prospects and statements given during registration made public. If an investor makes a loss and proves that the provided details were incorrect or incomplete they have a right to recover those losses. However, securities such as limited offerings, intrastate offerings, private offerings, state, municipal or federal government securities do not require registration.

The Securities Exchange Act of 1934

Securities compliance was created under this law and SEC was given power over all fronts of the industry. These incudes;

•    Registration and regulation of brokerage firms

•    Clearance of agents, transfer agents, and other self-regulatory institutions.

•    The agency was granted power to identify and ban various behaviors in the market such as insider trading.

•    The act also gave SEC disciplinary power on regulated individuals and entities.  

Investment Company Act of 1940

This law was made to eliminate conflict of interest in companies that undertake securities trading, investing, reinvesting and also securities selling to the public. It calls for regular disclosure to investors on the operations, investment objectives, policies and structure as well as the financial condition of the company.

Securities compliance is a major issue for any investment company. The strict rules may find you on the other side of the law. If you are not sure, always consult.

Why You Should Hire Professionals in Complaint Handling Services for Seemingly Trivial Issues

 Running a securities company that gets no complaints sounds like a dream come true. However, you will almost always receive one or two complaints even when you handle clients’ transactions in the best possible way. Some of these complaints might seem petty, and you might be tempted to forego professional complaint handling services when handling them or ignore the complaints altogether. Below are reasons you need professionals to handle even the most trivial client complaints.

To maintain your reputation

In the securities sector, having an above-board reputation is essential when you want to attract and retain clients. Promptly handling all complaints allows you to maintain a good reputation. Clients do not expect you to be infallible, but they will spread a good word about your firm when their complaints are handled well and resolved as best as possible.

To reduce your lawsuit risks

Nowadays, clients are more open to pursuing legal proceedings for their complaints than ever before. As such, even what you consider petty might end up in a lawsuit that will cost more to handle than what you would have spent for expert complaint handling services. Taking time to investigate your clients’ issues and handling them to their satisfaction discourages them from involving attorneys.

To make improvements

Sometimes, complaints can point you to issues that might be hurting your profits. When properly handled and investigated, you can use the complaints to improve some aspects of your securities firm. Be open to the input firms offering complaint handling services might have on what needs to be rectified to prevent future issues.

Exceptional customer service is among the cornerstones of a profitable securities firm. The above are among the elements that will set your company apart as the best choice for investors. This is crucial with the cutthroat competition for investors in the securities market.

Regulatory Audit Support Services: Holistic preparation for a Regulatory Audit

 According to research, the easiest way to have a successful regulatory audit is by using the holistic approach to quality. In this case, holistic refers to the act of emphasizing on the essence of an act as a whole while embracing the interdependence of the involved parts. That said, here are approaches by successful regulatory audit support services that ensure the success of every audit.

Strong Management Involvement

It is the management’s responsibility to ensure that everything is under control and that the small problems will not become enormous fires in the future. All the supposedly minor issues and the “almost tragedy “issues must be vetted, scrutinized and sorted at the management level. Pay attention to the often overlooked issues that might cause you problems.

Scrutinize the Status Quo

A majority of people and company owners go by the principle that if it is not broken, do not fix it. However, it is always a good idea to bring external consultants such as regulatory audit support services to review the key processes and quality systems. While you do everything as you should, get an outsider to confirm that the systems are working optimally.

Benchmarking is Essential

Knowing what other players in the industry are doing will help you stay on top of your game. But if you are going to benchmark, ensure that they are the best in the industry. Being the best is never about luck but hard work and, in this case, passing all regulatory audits. Case studies also come in handy in quality improvement studies.

While you will get many bullet points that guarantee success, these shortcuts usually do not work. Instead, hire regulatory audit support services. This gives you access to experienced professionals in the industry. They effectively help you prepare for an audit as they know all industry standards and what is needed to be compliant.