The Glass-Steagall Act was passed in 1933 and separated investment and commercial banking in response to the participation of commercial banks in investments in the stock market.
This blending of commercial and investment banking was considered too risky and speculative, and was widely blamed for the Great Depression.
Thus, banks were given the right to choose either commercial banking or investment banking; however, as an exception, commercial banks were allowed to guarantee the issuance of government bonds.
The Gramm-Leach-Bliley Act removed the Glass-Steagall Act’s restrictions on affiliation between commercial and investment banks in 1999, which some say triggered the 2008 financial crisis.
The 2,000 investor limit or rule is a key threshold for private businesses that are unwilling to disclose financial information for public consumption.
The 500 shareholder threshold was a rule set by the SEC that required companies to publicly disclose financial statements and other information if they reached 500 or more individual shareholders.
The Basel Accords are part of a series of three international banking regulatory meetings that established capital requirements and risk measurements for global banks.
A compliance officer is a person who makes sure that the company complies with external regulatory and legal requirements, as well as internal policies and charters.
Securities and Exchange Commission Form 13F must be filed quarterly by institutional investment managers with at least $100 million in assets under management.
Form 144 must be filed with the SEC if there is an order to sell company stock during any three-month period where the sale volume exceeds 5,000 shares or units or the aggregate sale price exceeds $50,000.
The International Organization for Standardization (ISO) is an international non-governmental organization made up of national standards bodies that develops and publishes a wide range of private, industrial and commercial standards.
Financial advisers must comply with the Investment Advisers Act of 1940, which requires them to exercise fiduciary duties and act primarily on behalf of their clients.