The Securities Act of 1933 was created to protect investors after the 1929 stock market crash. The point of this legislation was to make sure that financial statements would be more transparent, making it possible for investors to make more informed decisions. Additionally, laws were passed to prevent fraudulent acts and misrepresentation in the securities market.
The U.S. Securities and Exchange Commission (SEC) is responsible for supervising the enforcement of federal securities laws. Kentucky and every other state in the country have their respective agencies that perform similar duties as well. They each regulate the sale or exchange of stocks, bonds and other financial instruments that can be traded for a monetary value within their borders. The work of both of these agencies is referred to as regulatory work.
A law that emerged out of the Great Depression still guides securities laws today.
Is your company ready for a regulatory investigation?
In the state of Kentucky and in the rest of the United States, companies are held to the Registration Under the Securities Act of 1933. This law means that companies must provide certain information so that transparency is maintained. This information is submitted through the registration of securities.
A company that is offering securities has to ensure it is in compliance with applicable laws. These are meant to provide current and potential investors with the critical information that might impact their decision on an investment.
When your company is being investigated for regulatory violations, it is imperative that you make a plan for handling the matter. You shouldn't do anything that could incriminate the company and you need to ensure that everyone is acting in a reputable and lawful manner.