United States Securities and Exchange Commission (U.S. SEC)

The United States Securities and Exchange Commission (U.S. SEC) is an independent federal agency established in 1934, responsible for enforcing federal securities laws, regulating the securities industry, and protecting investors. Its mission is to maintain fair, orderly, and efficient markets, facilitate capital formation, and ensure that investors have access to material information to make informed decisions.

Key aspects of the U.S. SEC include:

Regulation and Enforcement: The SEC oversees securities exchanges, brokers and dealers, investment advisors, and mutual funds, ensuring compliance with securities laws to prevent fraud and promote transparency.
Disclosure Requirements: Public companies are required to disclose meaningful financial and other information to the public, providing a common pool of knowledge for all investors.
Investor Protection: The SEC works to protect investors from fraudulent and manipulative practices, offering resources and education to help them make informed investment decisions.

In March 2024, the SEC adopted new rules to enhance and standardize climate-related disclosures for investors. These rules require public companies to provide consistent, comparable, and reliable information regarding the financial impacts of climate-related risks on their operations and how they manage these risks. The aim is to address investors' demand for greater transparency while balancing concerns about the costs associated with such disclosures.

Source(s):

U.S. Securities and Exchange Commission. (2024). SEC Adopts Rules to Enhance and Standardize Climate-Related Disclosures for Investors.
U.S. Securities and Exchange Commission. (n.d.). About the SEC.
Investopedia. (n.d.). Securities and Exchange Commission (SEC).

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