How Trump's Project 2025 will affect investors: PCAOB and FINRA
From page 830:
What Is the Public Company Accounting Oversight Board (PCAOB)?
The Public Company Accounting Oversight Board (PCAOB) is a non-profit organization that regulates auditors of publicly traded companies. The purpose of PCAOB is to minimize audit risk. In particular, the PCAOB oversees the audits of public companies, brokers, and dealers registered with the U.S. Securities and Exchange Commission (SEC)
KEY TAKEAWAYS:
The Public Company Accounting Oversight Board (PCAOB) is a non-profit organization that regulates audits of publicly traded companies to minimize audit risk.
The PCAOB was established at the same time as the Sarbanes-Oxley Act of 2002 to address the accounting scandals of the late 1990s.
The board protects investors and other stakeholders of public companies by ensuring that auditors follow strict guidelines.
What Is the Financial Industry Regulatory Authority (FINRA)?
The Financial Industry Regulatory Authority (FINRA) is an independent, nongovernmental organization that writes and enforces the rules governing registered brokers and broker-dealer firms in the United States.
Its stated mission is "to safeguard the investing public against fraud and bad practices." It is considered a self-regulatory organization.
FINRA was created as the result of the consolidation of the National Association of Securities Dealers (NASD) and the member regulation, enforcement, and arbitration operations of the New York Stock Exchange (NYSE) in 2007. The consolidation was meant to do away with overlapping or redundant regulation and reduce the cost and complexity of compliance.
Clearly these organizations were created in the aftermath of financial crashes to protect investors. Like so much from Trump's Project 2025, this is ill advised.
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