When it comes to the matter of business governance and due diligence, Maine has always taken a progressive stance. Whether that’s the stringent rules, highlighted by the NCSL, put in place to combat corruption, or the work of the BFI in regulating financial industry businesses, the state government has always tried to put across a look of really caring about how businesses manage their money. Overriding state rules are those imposed by the SEC, and SEC rules have undeniably become more prohibitive over the past decade. Staying in line with these rules can be difficult, but Maine businesses do have a path forward.

17a-3 And 17a-4 

Many businesses, financially oriented or not, are actively involved in investment to help them build profits and establish their roots in the industry. Maine has a well developed financial industry, and many of their biggest employers are involved in stock trading, too. This includes, as CNBC highlights, Avangrid, and other large employers are involved too. SEC regulations are often heavily based in record keeping. Diligence is the name of the game, and businesses must ensure they archive properly. SEC web archiving standards changed in June 2020 in response to new 17a-3 and 17a-4 guidelines; businesses will do well to look to expert outside help on ensuring their archiving solution meets the proper standard.

Marketing Changes

New SEC rules don’t just change how you interact with the data you already receive as a business. As the SEC highlighted on their website back in December, there are now changes in how marketing is allowed to be accomplished by firms with involvement in financial areas. One benefit of the rules is that they have been consolidated. There is now one solid rule, rather than a disparate mix of other measures, meaning that businesses can much more easily locate how their own marketing efforts will be impacted and will need to be altered.

Faster Action

The SEC is an inconsistent agency – it sometimes acts quickly and, other times, ponderously. This is set to change with a big statement of intent from the SEC chair, Gary Gensler. In a statement, he promised to delist Chinese stocks far quicker following mandatory audits. While this concerns international business, this level of activity is likely to have a rebound in the USA. SEC regulators will act more quickly than they have in the past, and will act with more confidence against any potential disruption to their business. This should inspire businesses to act diligently and ensure that every area of their book-keeping is kept up to date and accurate. That means any request for information can be met and the business you undertake can be completed with peace of mind.

Ultimately, that’s what every business is after – the space to continue growing and conducting their business without the concern of regulatory oversights causing issues down the road. Through good quality book-keeping, businesses involved in the financial services industry will do their part and keep the SEC happy.