ipl-logo

Strict Oversight Of The SRO Entities By The US

1389 Words6 Pages

There are a slew of incidents that led to the strict oversight of the SRO entities by the SEC. This power is vested in them by the congress in view of the public interest. The participants of the market viz. the stock exchanges, the clearing agencies and the various other association of securities must register with the SEC and file their policy changes with the SEC. The SEC is armed with various tools empowered by the congress in order to effectively oversee the performance of the SROs. The SEC has the power to examine and inspect the functioning of the SROs.
Commissioner Luis A. Aguilar, U.S. Securities and Exchange Commission, in his public statement noted that the SROs need to enforce compliance among their subsidiaries or the participating …show more content…

The SROs, in order to gain more business or sustain the existing business, tend to relax the rules and policies leading to increased risk because of preferential data sharing. For example, there are a lot of incidents in which the SROs favor one member or customer over another by releasing financial information to the member who is ready to pay for the information on a priority basis. After the data is shared with these paying subscribers, it is then let out to the public …show more content…

This act indicated the failure of NYSE in its surveillance of its members and in effectively addressing issues that could involve violations. Thus NYSE violated section 19 (g) of the exchange act by failing to enforce section 11 (b) of the exchange act and Rule 11b-1 and various other NYSE rules including rule 92 and 104.10. Prior to this failure, in 1999 SEC ordered NYSE to comply with a series of undertakings that were intended to improve the NYSE’s regulation of all its floor members, including specialists. This was in accordance to the NYSE’s regulatory failure to detect and stop unlawful proprietary trading including “frontrunning” of customer orders by some of its independent floor brokers in late 1990s. However, NYSE failed to thoroughly investigate indications of possible violations by its specialists. As a result, the SEC ordered NYSE to comply again with a series of undertakings. As per the undertakings, in 2002, the actions taken by NYSE

Show More
Related

Foreclosure Issues In The CIBC Wood Gundy Case

824 Words | 4 Pages

Regardless, Saturley was well aware of the his positions code of ethics, as well as the seriousness of unauthorized discretionary trading. It turns out that this is not the first time he had been punished for such actions; he had also been reprimanded for discretionary trading in 2004, investigated again in 2007 and had received numerous CIBC bulletins warning against discretionary trading. He had several warnings, and yet continued to perform such

Read More

Court Case Of John And Timothy Rigas

771 Words | 4 Pages

In 2002 the Securities Exchange Committee filed the suit against Adelphia Communications Corp and all the members listed previously. Adelphia owned several subsidiary companies and the first SEC suit against them is for hiding the liabilities of Adelphia in these companies. The second was for making false statements to deceive others such as Wall

Read More

Eileen Foster Case Summary

428 Words | 2 Pages

Eileen Foster was the Executive Vice President of Fraud Risk Management at Countrywide, and later served in the role of Senior Vice President of the Mortgage Fraud Investigation Division at Bank of America after the two companies merged (Foster, n.d.). It was her responsibility to investigate mortgage origination fraud and reporting suspicious activity to regulators and the company’s Board of Directors. After several years of seeing a lot of suspicious activity and blatant acts of fraud she found that the company was playing party to this activity. Any employee who reported fraud and wrongdoing to Employee Relations were being transferred, demoted, harassed or terminated. When Foster reported her concerns to Countrywide’s Internal audit to investigate, the company not only chose to conceal her allegations from Bank of America, but it also directed employee relations to investigate Foster for wrong doing.

Read More

Pros And Cons Of Sarbanes Oxley Act Of 2002

1249 Words | 5 Pages

Not only can the corporation be held accountable, but also its individuals (executives, officers, and advisers). Willful wrongdoers can face jail time of up to 20 years, which helps deter some offenders from committing fraud. In addition public corporations were forced to strengthen their compliance program. The restructuring of internal policy and controls has increased investor protection; restoring some faith in the financial sector. Officers, executives and directors are required to sign off on SEC filings and accounting documents, certifying the accuracy of financial statements.

Read More

Summary Of The Bernie Madoff Case

1565 Words | 7 Pages

Madoff had Complicit knowledge of the fraud that he was obtaining on doing on his client base that they were oblivious to his actual fraudulent Securities, that there actually was no project nor any Securities that they were trading on the behalf of these clients that in an sense it was almost like a pyramid scheme that he would obtain funds from the individual to pay off those investors with the 20% that he guaranteed to give them and then obtained the other 20% from new clients. Explain to them the operation and from the market of how mr. Madoff had actually set out to defraud the clients as well as the Trade Commission U.S. Securities from Bernie L Madoff in the defendants forward from the chairman and head Of the board directors for the NASDAQ stock market interest in in the marketing and maintaining it on Operating the records of fair deals and higher ethics standards that he had been tricking them with Giving them fraudulent information on the firm's activities. The supervisor also advised FBI that on January 7th, 2008 That Mr. Madoff Misrepresented His Holdings and its client base to the SEC Stating that he had between 11 and 25 clients and total approximately 17.1 billion dollars and assets under his management However, he had less clients and he only had approximately 7

Read More

Political Factors Affecting Ulta Beauty

913 Words | 4 Pages

For operational purposes, the company collects and stores confidential information about their customers, employees, suppliers, and vendors. For purposes of their rewards program, the company collects sensitive and confidential consumer information. Although security measures and information technology systems have been put in place to ensure secure transmission and storage of confidential information, security breaches, computer viruses, or even human error can occur. Any of these events could cause data to be lost or stolen, as well as disclosed and used with malicious intent. Such occurrence could lead to litigation, fines, increased security costs, and damage to

Read More

Explain Why CMS Is Concerned With Regulating The Cost Of Long Term Care

527 Words | 3 Pages

Regulations monitor and regulate the laws. It is responsible to ensure and enforce the law as it goes. Basically, regulation is making sure that that each law or legislation is put into effect and the process and details on how it is put into effect. 2. I believe the reasons CMS is concerned with regulating the cost of long term care is because of nursing homes regulation.

Read More

Dodd-Frank Positive Legislation

1243 Words | 5 Pages

This is a commission that has been created by the Congress for the purpose of ensuring proper regulation of the securities. This commission is also meant to protect the investors by offering them useful information before they make entry into the market. In addition to this, the commission also ensures monitoring of the corporate takeovers within the United States. The 5 members of this commission are appointees of the president in, which the Senate discusses and analyzes the names before approval of the appointees. They are meant to address the issues that touch on activities such as fraud that may be a threat to the United States of America economy.

Read More

The New York Stock Exchange And The SEC Go Against The Kantian Rights Approach

396 Words | 2 Pages

This article discussed a type of stock market technology that a company is trying to use as a competitor to the New York Stock Exchange. However, the New York Stock Exchange has used their lobbying power to delay the company to join the market and is trying to implement the technology before the other company can even join. This way, they will still retain all of their customers. The key stakeholders here are the SEC, the New York Stock Exchange, Investors Exchange, and those who use the stock market. The activities of the New York Stock Exchange and the SEC go against the Kantian Rights approach and Rawl's distributive justice under the Justice and Fairness Approach.

Read More

Asx's Role In Insider Trading And Investigation

846 Words | 4 Pages

These arrangements includes monitoring and surveillance and the enforcement of the obligations of the listed company. First of all, the ASX requires the continuous disclosure of important information of the listed company. Second, the ASX also monitors all announcement made by listed companies. Finally, the ASX also monitors if the listed companies meets their quarterly, half-yearly and yearly report requirements. In addition, once the ASX discovered that a company has failed to comply with the listing rule of ASX, the ASX would require the company to take corrective actions like disclosure of import information.

Read More

Great Depression Vs Great Recession

3339 Words | 14 Pages

This law regulates the selling of securities, an area that states had sole jurisdiction up until the stock market crash of 1929. “The legislation addressed the need for better disclosure by requiring companies to register with the [SEC].” Unfortunately, this post-Depression-era creation has also proven to be a failure. Oversight flaws by the SEC fueled the Great Recession crisis; this fact was conceded by the former chairman of the SEC, Christopher Cox. Chariman Cox has been recorded as saying that the SEC was “fundamentally flawed from the beginning.”

Read More

Conflict Of Greed: The 2008 Market Crash

1982 Words | 8 Pages

Who is checking the banks? The Securities Exchange Committee was created after the Great Depression in order to regulate investment banking. During the internet stock bubble in 1990s into the 2000s, it didn’t do anything to regulate. It was noted that the SEC was so useless, it eventually went down to one single employee for awhile. Banks had so much money that they were able to manipulate the government through lobbying and campaign donations.

Read More

Lehman Brothers: Financial Fraud In 2008

2178 Words | 9 Pages

Conclusion After reviewing the information obtained through this report, it highlights the lack of regulation and their accounting practices which took place within Lehman Brothers. The accounting practices that were used within the bank were set by the tone at the top and show that the CFO’s during the 2000’s and going forward had plenty of knowledge of the Repo 105 transactions and had no great will to do anything about. The thinking at the time seemed to be, that the company had used this accounting practice for so long, that if there was something wrong it would have come up by now no point rocking the boat.

Read More

Whistleblowing System In The Film Chasing Madoff

1179 Words | 5 Pages

Since 2008 the SEC has continued to make reforms and improvements in order to deter another instance like the Madoff fraud. Some of the initiatives that the SEC has taken, are to refurbish how tips are treated, promoting whistleblowing systems, refining fraud detection techniques, and reviving enforcement

Read More

Role Of Corporate Governance In Nestle

1346 Words | 6 Pages

A system to check and balances the benefit of all the board of directors and to avoid some of top management from making decisions that only benefit themselves is created and named corporate governance. Corporate governance means the system of rules, practices and processes by which a company is directed and controlled. The set of rules provided as a guidelines for the board of directors to make sure that accountability and fairness in a company’s relationship with its stakeholders such as financiers, customers, management, employees, shareholders and also society in order to achieve company’s goals and targets in a manner that add a value to the company. All of the stakeholders play an important role in corporate governance to ensure that

Read More

More about Strict Oversight Of The SRO Entities By The US

Related Topics

Open Document