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Regulatory Framework
Global Regulators
Learning Outcome
5
Understand global regulatory cooperation and coordination.
4
Analyse major enforcement actions and market impact.
3
Compare SEC and FCA regulatory approaches.
2
Identify their functions, powers, and regulatory tools.
1
Understand the origin, role, and framework of SEC and FCA.
The U.S. Securities and Exchange Commission (SEC)
- Created under the Securities Exchange Act, 1934 after the Wall Street Crash of 1929.
- Established to restore investor confidence and regulate U.S. securities markets.
- Independent federal agency headquartered in Washington D.C.
- Led by five commissioners, including the Chairperson.
- Commissioners are appointed by the President and confirmed by the Senate.
- Members serve staggered five-year terms to maintain political independence.
Key Facts at a Glance:
SEC's Three Core Mandates
The SEC's mission is structured around three pillars:
SEC's Key Functions
SEC's Key Functions
SEC's Key Functions
The UK Financial Conduct Authority (FCA)
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FCA was established on 1 April 2013 under the Financial Services Act, 2012.
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It replaced the Financial Services Authority (FSA).
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The FSA was criticised for weak supervision during the 2008 financial crisis.
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FCA is an independent, non-governmental regulator in the UK.
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It is funded by fees collected from regulated firms.
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FCA is accountable to the UK Parliament and HM Treasury.
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Unlike the SEC, the FCA operates independently from the government budget.
The UK Financial Conduct Authority (FCA)
Key Facts at a Glance:
FCA's Three Statutory Objectives
FCA's Key Functions
SEC vs. FCA (Side-by-Side Comparison)
SEC vs. FCA (Side-by-Side Comparison)
Summary
5
SEBI is influenced by both models.
4
Both fight fraud and market abuse.
3
SEC is rules-based; FCA is principles-based.
2
SEC is government-funded; FCA is industry-funded.
1
SEC and FCA regulate U.S. and UK markets.
Quiz
Under which legislation was the SEC established?
A. Financial Services Act, 2012
B. Banking Regulation Act
C. Securities Exchange Act, 1934
D. Companies Act
Quiz-Answer
Under which legislation was the SEC established?
A. Financial Services Act, 2012
B. Banking Regulation Act
C. Securities Exchange Act, 1934
D. Companies Act
Regulatory Framework - Global Regulators
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