Born with the 1934 Exchange Act, in its first 60 years the SEC inspection program eventually took on regulation of securities exchanges, member firms, over-the-counter firms, investment companies and advisers, and finally credit rating agencies. The program grew over time as the number of regulated entities increased and cooperative relationships with self-regulatory organizations and exchanges evolved. Throughout, regulators believed that to the extent that it could be funded, prevention rather than prosecution was the best way to protect investors and safeguard financial markets.
