Which body regulates investment banking firms for compliance?

The U.S. Securities and Exchange Commission (SEC) is the primary regulatory body that oversees investment banking firms to ensure compliance with securities laws and regulations. The SEC's mission includes protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation.

Investment banking firms must adhere to various regulations concerning the issuance and trading of securities, including the proper disclosure of financial information, trading practices, and investor protections. The SEC requires these firms to register their securities offerings and file regular reports that keep investors informed about their financial health and operations. This regulatory framework is crucial for maintaining public confidence in the integrity of the securities markets.

While other entities, like the Financial Industry Regulatory Authority (FINRA) and the Federal Reserve, also play important roles in regulating aspects of the financial industry, the SEC is specifically charged with enforcing compliance related to the securities laws relevant to investment banking firms. The Federal Reserve primarily oversees monetary policy and regulates banking institutions, while the Treasury Department focuses on national financial systems and fiscal policy rather than direct regulation of investment banks.