Securities And Exchange Commission
What Does Securities And Exchange Commission Mean?
The Securities and Exchange Commission (SEC) is the federal agency responsible for regulating the securities market. It protects investors by ensuring compliance with securities laws across the country.
Since many insurance companies offer securities and investment options, they are also subject to these laws and fall under the SEC’s regulatory oversight.
Insuranceopedia Explains Securities And Exchange Commission
The SEC frequently prosecutes individuals and entities involved in offenses such as insider trading, fraud, and the dissemination of false or misleading information. Its primary goal is to maintain a fair and legitimate securities market while holding accountable those who attempt to undermine it.
While securities are not the primary product of insurance companies, many—especially life insurance companies—engage in securities-related activities. These companies must comply with U.S. securities laws or risk-facing enforcement actions from the SEC.
