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Investor Protection: Regulators

Regulators control the securities market and protect investors from the dishonest services of investment companies.

Regulators objectives

  • Issue licenses to investment companies and revoke them;
  • Maintain registers of licensed companies;
  • Request quarterly reports from licensed companies;
  • Develop laws protecting the rights of investors;
  • Handle complaints from clients of investment companies.

Each country has its own financial regulator that controls the securities market of that country. Thus, the American market is regulated by the US SEC.

United States Securities and Exchange Commission (US SEC)

The Commission was established in 1934 and operates in accordance with the following laws:

  • Securities Act of 1933
  • Securities Exchange Act of 1934
  • The Trust Indenture Act of 1939
  • The Investment Company Act of 1940
  • The Investment Advisers Act of 1940
  • The Sarbanes-Oxley Act of 2002
  • Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010

Raison Asset Management is a Registered Investment Adviser (RIA) regulated by the U.S. Securities and Exchange Commission , SEC# 801-107170.

U.S. Financial Services Regulatory Authority (FINRA)

Compliance with US OTC trading rules is monitored by the Financial Industry Regulatory Authority (FINRA), which is controlled by the US Securities and Exchange Commission.

The service was established in 1939 and has several functions:

  • Develop rules that control the ethics of brokers and dealers in the United States
  • Ensure that market participants comply with these rules
  • Increases transparency of the US OTC market

Raison Asset Management is a FINRA member.