The Securities and Exchange Commission Thursday announced plans to increase its oversight of the online brokerage industry.
SEC News Digest (September 25, 2007)::
This is a great step toward making SEC reporting easier for registrants and ( Brean Murray), a registered broker-dealer, and principals of an investment
http://www.sec.gov/news/digest/2007/dig092507.htmHOME |
According to The Wall Street Journal, the SEC's inquiry is still in its early stages and no one knows specifically what action might be taken.
However, this marks the first time the SEC's Office of Compliance Inspections and Examinations has taken a detailed look at the online trading industry which now accounts for almost 30 percent of trades made by individual investors. SEC representatives have already met with officials from Charles Schwab Corp. and E*Trade Group Inc. and will meet with others.
SEC Testimony: SEC Oversight of Sales of Securities to Military ::
In addition, an online brochure on periodic payment plans is available on our We recommend that you consider taking steps to address the features of mutual
http://www.sec.gov/news/testimony/ts111705lr.htmHOME |
The Large Firm Project::
Once identified, steps should be taken to reduce the potential for future sales six months of the effective date of their SEC broker-dealer registration, and
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The SEC said the primary purpose of the inspections is to ensure the brokers are complying with SEC rules on trading and investor protection.
Schwab's general counsel told The Journal "regulators should be pleased about the quality and quantity of information being conferred on retail investors as well as lower costs and greater treating efficiency" offered through online trading.
SEC News Digest (Issue 2008-127; July 1, 2008)::
enabling SEC attorneys to view and search all evidence online and seamlessly Supervised Entities program, and oversight of Nationally Recognized Statistical
http://www.sec.gov/news/digest/2008/dig070108.htmHOME |
Lisa Nash, an E*Trade spokesman, said the company works very closely with regulators and is in constant contact with them.
The investigation comes as the SEC is conducting a separate inquiry into online investment fraud. SEC officials are also planning to meet with Massachusetts securities officials who have launched their on crackdown on Internet fraud.
Last week, in a move some online brokers believed is targeting them, the SEC proposed broker-dealers would be in violation of securities rules if they lacked the "operational capability" to handle daily activities. Although occasional outages would not be a problem, a pattern of problems could be considered a violation.
Risk Management Practices for Mission Critical Information Systems::
questions that online brokers and a broad range of technology-dependent companies must consider: In 1998 the SEC took a small step in the direction of
http://www.oag.state.ny.us/investors/1999_online_brokers/risk_management.htmlHOME |
On-Line Trading: Better Investor Protection Information Needed on ::
recommendations that would enhance oversight of on-line broker However, SEC found that 17 broker-dealers were not taking the steps necessary to
http://www.glr.com/govt/security/onlinetrading.htmlHOME |
SEC Commissioner Laura Unger is also heading up a study on the online trading business that could call for new regulation. Unger's report is scheduled to be complete by the fall.
While regulatory authorities say their actions are being taken solely to safeguard investors, some advocates of smaller firms believe larger Wall Street firms, whose business is being threatened by the lower cost of online trading, have moved the SEC to take the action.
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