How Do You Understand SEC Noncompliance Penalties?
The U.S. Securities and Exchange Commission (SEC) is dedicated to protecting investors and ensuring that the sales and trade of U.S.-based stocks and securities are carried out as mandated by U.S. law. The SEC regulates the securities market with a list of compliance regulations. The penalties for noncompliance include civil action in U.S. District Court, fines and trading suspensions. Most large businesses and corporations hire an SEC securities adviser to ensure compliance. Appoint a responsible party who will provide an assessment of SEC compliance. Some companies choose to hire an external SEC compliance consultant or an attorney who specializes in SEC compliance. File the SEC-required 10-K form within 60 days after the end of your company’s fiscal year. This form can be downloaded from the SEC Forms list (see Resources below). You can choose to send this 10-K form to your shareholders instead of an annual report. Ensure your accounting department or firm uses the SEC’s servicing c
