Federal Securities Legislation

Question 1

Requires registration of initial public offerings

Answer 1

Securities Act of 1933

Question 2

Prohibited financial institutions from consolidation and offering any combination of traditional commercial banking, investment banking (brokerage firms), and insurance

Answer 2

Glass-Steagall Act of 1933

Question 3

Requires companies with previously issued securities to keep information current; created the SEC to enforce securities laws; requires brokers and dealers to register with the SEC

Answer 3

Securities Exchange Act of 1934

Question 4

Brought the OTC market under the regulation of the SEC and called for self regulation of OTC securities dealers

Answer 4

Maloney Act of 1938

Question 5

As amended in 1978, provides for the liquidation of hopelessly troubled firms and provides for the reorganization of troubled firms that might be able to survive

Answer 5

Federal Bankruptcy Act of 1938

Question 6

Extended securities laws to investment companies / mutual funds

Answer 6

Investment Company Act of 1940

Question 7

Requires registration for and regulates activities of investment advisers

Answer 7

Investment Advisers Act of 1940

Question 8

Made it clear that insurance was to be regulated at the state level as long as the states implemented and executed this regulation adequately

Answer 8

McCarren-Ferguson Act of 1945

Question 9

Established the Securities Investor Protection Corporation (SIPC); Insures customer’s accounts up to $500,000 in securities and cash, with a limit of $250,000 of cash coverage (in the event of the failure of a brokerage firm)

Answer 9

Securities Investor Protection Act of 1970

Question 10

Specified what constitutes the insider trading of securities and stiffened the penalties for engaging in such trading

Answer 10

Insider Trading and Securities Fund Enforcement Act of 1988

Question 11

Addresses the manners in which financial institutions manage the private information of individuals; released the Glass-Steagall Act of 1933

Answer 11

Gramm-Leach-Bliley Act of 1999

Question 12

Requires broker-dealers (among others) to have internal policies and procedures, and controls to meet the know your customer mandate as an effort against funding terrorism by money laundering

Answer 12

USA PATRIOT Act of 2001