Administrative agencies deal with specific issues that may require expertise. All existing administrative agencies are established by Article 1 Section 1 of the constitution which reads: “all legislative powers herein granted shall be vested in a Congress of the United States.” Another clause in the 8th section of the article 1 says that the Congress shall have power “to make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers… in any department of officer thereof.” Examples of administrative agencies include Central Intelligence Agency, Environmental Protection Agency, Commodity Futures Trading Commission, Federal Election Commission, Federal Trade Commission, Securities and Exchange Commission. An overview of the Securities and Exchange Commission (SEC) The United States Securities and Exchange Commission (abbreviated SEC) is a federal agency whose primary role or responsibility is to enforce the federal securities laws and to regulate the securities industry, stock and options exchanges and other electronic securities markets in the U.S. It was created by section 4 of the Securities Exchange Act of 1934, commonly referred to as the 1934 Act. . The SEC also implements the Securities Act of 1933, the Trust Indenture Act of 1939, the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Sarbanes-Oxley Act of 2002 and other statues. A historical background of the SEC Before the enactment of the SEC and other federal securities law, there existed the professed Blue Sky Laws, endorsed and enforced at the state level. They controlled the offer and sale of securities to protect the public from being defrauded. The provision varied across states, though all involved a compulsory registration of offerings and sales. Also, every US stockbroker and brokerage firm had to register. Despite their good intentions, Blue Sky Laws failed to achieve the effectiveness and efficacy that was needed. For instance as early as 1915, the Investment Bankers Association encouraged its members to make securities across state lines through the mail, thus effectively “ignoring” Blue Sky Laws. Through the Pecora Commission, hearing on abuses on interstate frauds took place. It was after that that Congress passed the Securities Act of 1933. Contrary to the Blue Sky Laws, this act regulates interstate sales of securities at the federal level. The successive Securities Exchange Act of 1934 regulates the secondary market. Functions of the SEC The main function of the SEC at its inception was to restore public confidence in the securities market, which had been wiped out by the Great Depression. This depression was as a result of the stock market crash in 1929. The agency, through its chairperson and commissioners also have to ensure that publicly held companies, investment companies and advisers, and other securities markets participants, comply with the federal laws on securities. In 1934, Congress enacted the Securities Exchange Act, and the "disclosure" doctrine (from the Securities Act of 1933) was extended to securities registered and listed for public trading on the U.S. securities exchanges. In 1964, the Securities Act Amendments extended disclosure and reporting provisions to equity securities in the over the-counter market (Hamilton 149). The act aims to ensure (through the SEC) just and organized securities markets by barring certain types of activities and by formulating regulations regarding market operation and its participants. The SEC also oversees the Public Utility Holding Company Act of 1935.