Which body was established to protect investors in the securities industry?

The Securities and Exchange Commission (SEC) is the body established to protect investors in the securities industry. It was created by the Securities Exchange Act of 1934 in response to the stock market crash of 1929 and the Great Depression, with the primary goal of restoring investor confidence through a variety of regulatory measures.

The SEC implements and enforces federal securities laws, requiring public companies to disclose important financial information, which helps investors make informed decisions. It oversees the securities markets, monitors for fraud and violations, and has the authority to regulate various entities involved in securities transactions. This regulatory framework is crucial for maintaining fair and efficient markets and protecting investors from unfair practices.

While the other organizations play important roles in the financial regulatory landscape, they focus on distinct areas. For instance, the Financial Industry Regulatory Authority (FINRA) is a self-regulatory organization that oversees brokerage firms and exchange markets, but it operates under the SEC's framework rather than solely protecting investors. The Federal Reserve Board (FRB) is responsible for the monetary policy of the United States, and the Commodity Futures Trading Commission (CFTC) regulates the derivatives markets, including futures and options, but neither specifically focuses on the securities industry in the manner the SEC does.