Although only required to discuss two associations this writer thought it was important to discuss

1000 WordsApr 23, 20194 Pages
Although only required to discuss two associations this writer thought it was important to discuss the SEC as they are directly connected to FINRA in that they take litigation cases, and fraud cases from FINRA and follows up on whether any security laws or criminal laws were broken. Once they investigate the wrong doing they proceed with the corrective action that best suits the offense not excluding criminal prosecution and jail time. According to the Securities and Exchange Commission (2014) website the mission of the SEC is to “protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation”. The SEC was created to ensure that all investors big or small have a fair and unbiased account of a…show more content…
FINRA's next role in the industry is to assist in disciplining those who break the laws. According to the FINRA (2014) website they have the authority to “fine, suspend, or bar” in severe cases. One of the most notable cases was that of a Florida broker who ripped of thirty or so NFL players. The investors all lost a great deal of money, but with the help of FINRA (2014) the individual was brought to justice and barred from the industry. Finra (2014) also aided in getting 1.6 million dollars in restitution from an individual who conned the elderly and even got a million dollar fine for their wrongdoing. These cases both show the reach of their enforcement and their abilities. For more severe violations FINRA (2014) will look to the SEC to assist in the prosecution of those violators. The SEC focuses usually on the markets and companies more then the actual individuals where associations like FINRA and others enforce the sellers of the products. Prevent and detect insider trading or other potential techniques that an organization can employee to manipulate the markets is another task assigned to FINRA. According to FINRA (2014) they process more information in a day then the Library of Congress or Visa. Many of today's personal computers have a capacity of 500GB to 1TB of information, that is the equivalent of stuffing at least 6 every day of the year. That many transactions everyday must be a daunting task and require some very
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