Laws
Capital Markets Regulation Authority
Securities Act of 1933
Often referred to as the "Truth in Securities" law, this act requires that investors receive significant information about securities offered for public sale. It aims to ensure transparency and prevent fraud in the issuance of securities.
Investment Company Act of 1940
This act regulates investment companies and aims to protect investors by requiring disclosure of important financial information and preventing fraudulent practices.
Sarbanes-Oxley Act of 2002
Enacted in response to corporate scandals, this act implemented stricter regulations for financial reporting and corporate governance to protect investors from fraudulent financial practices.
Dodd-Frank Reform and Consumer Protection Act (2010)
This act includes provisions aimed at increasing transparency in financial markets, reducing risks in the financial system, and enhancing consumer protection, particularly in areas vulnerable to fraud.
Foreign Corrupt Practices Act (FCPA)
This act prohibits bribery of foreign officials for the purpose of obtaining or retaining business, addressing fraud in international business transactions.
Glossary
The Corporate Transparency Act (CTA)
Banks must provide clear and detailed disclosures about fees, interest rates, and terms for all products and services. Banks are required to publish annual reports summarizing financial performance, risk management practices, and compliance with regulatory standards. Establish a platform for consumers to provide feedback on banking services, which must be reviewed and addressed by bank management.
Consumer Protection in Banking Act (FCPA)
To safeguard consumer rights and promote fair treatment in banking practices. Prohibit discriminatory lending practices and require banks to provide equal access to credit for all qualified applicants. Mandate that banks implement a robust complaint resolution process, ensuring timely responses to consumer grievances. Requires banks to offer educational resources and workshops to help consumers understand financial products and make informed decisions.
Escrow Services
Escrow services must comply with broader consumer protection laws, such as the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), which mandate disclosures and fair practices in financial transactions. Escrow agents must provide clients with clear information about fees, terms, and conditions before entering into escrow agreements.
Securities Exchange Act of 1934
This act regulates the trading of securities in the secondary market. It established the Securities and Exchange Commission (SEC) to enforce securities laws and protect investors against fraud.