The Securities and Exchange Commission Thursday announced plans to increase its oversight of the online brokerage industry.
Corporate Law and Finance Center From SECLaw.com::
and commentary from SECLaw.com - the online guide to the law of the unfair, since the SEC has nothing to do with the oversight of banks and mortgage
http://www.seclaw.com/centers/corpfin.shtmlHOME |
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.
GAO-01-858 On-Line Trading: Investor Protections Have Improved but ::
Commission (SEC) ensure that brokerdealers with on-line channels Second, we recommend that the Acting Chairman of SEC take steps to
http://www.gao.gov/new.items/d01858.pdfHOME |
OVERSIGHT OF SELF- REGULATORY ORGANIZATION ARBITRATION::
ON-LINE FILINGS. The SROs do not offer on-line filing of arbitration claims. implementing steps, such as those outlined above, to increase public awareness of the
http://www.sec.gov/about/oig/audit/289fin.pdfHOME |
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 Market Information: Agenda for April 12, 2001 Meeting::
Members were asked whether SEC oversight of market data fees should remain as it of subscriber (e.g., small firm broker-dealer, large market maker, online broker,
http://www.sec.gov/divisions/marketreg/marketinfo/agenda4.htmHOME |
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 Speech: Remarks at Meet the Regulators (L. Richards)::
And of course, both funds and broker-dealers will need to implement new the benefits of cooperating with the Commission by taking steps to protect
http://www.sec.gov/news/speech/spch545.htmHOME |
BW e.biz 5/24/99--Perspective: Extend the Safety Net for Cyber Investors::
beginning of 1998 and recently pledged to sharply step up enforcement. orders of market makers and is increasingly being marketed by online brokers.
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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.
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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