The Securities and Exchange Commission (SEC) is the government agency that regulates the securities market. This agency protects investors by ensuring that securities laws are being followed throughout the nation.
Many insurance agencies offer securities and investing options and are, therefore, subject to securities laws and regulated by the SEC.
The SEC commonly prosecutes the perpetrators of offenses such as insider trading, fraud, and the dissemination of misleading material. In other words, the SEC attempts to keep the securities market fair and legitimate and punishes parties who seek to corrupt it.
Although securities are not the primary product offered by insurance companies, many insurance companies—life insurance companies in particular—still deal in them. These companies must comply with U.S. securities laws or face consequences from the SEC.
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