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Hearsay Rule
Categories: Legal,
A rule of evidence that prohibits the use of out-of-court statements that are offered as proof of the subject of the statement. These statements are not admitted as evidence because person who made the statement isn't in court for the other party to cross-examine. For example, if Cathy, an eyewitness to an accident, later tells Betsy that the pickup ran the light, Betsy would not be allowed to recount Cathy's remarks. Out-of-court statements that aren't offered to prove the truth of the statement are admissible, however. Suppose Tom is called to testify, "On January 1, Bob said the Steelers stink." If the party calling Tom wants to prove that Bob was alive on January 1, Tom's testimony would be admitted, because the other side could question Tom about whether the conversation really took place on that date. Whether the Steelers are a poor team is beside the point. Even statements that are hearsay may be admitted if they fall within one of the many exceptions to the rule. In general, hearsay will be admitted if the circumstances of the statement indicate a high probability that the statement is true. For example, a statement uttered spontaneously and under duress -- such as a victim's remarks immediately following an accident -- could be admitted because the judge might find that the person had little time to plan to say anything other than the truth.
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Office Of Compliance Inspections And Examinations (OCIE)
Categories: Estate Planning, Brokerages,
The Office of Compliance Inspections and Examinations ("OCIE") protects investors through administering the SEC's nationwide examination and inspection program. Examiners in Washington DC and in the Commission's 11 regional offices conduct examinations of the nation's registered entities, including broker-dealers, transfer agents, investment advisers, investment companies, the national securities exchanges, clearing agencies, the nationally recognized statistical rating organizations ("NRSRO"s), SROs such as the financial industry regulatory authority ("FINRA") and the municipal securities rulemaking board, and the public company accounting oversight board ("PCAOB"). OCIE's mission is to protect investors, ensure market integrity and support responsible capital formation through risk-focused strategies that: (1) improve compliance; (2) prevent fraud; (3) monitor risk; and (4) inform policy. The examination program plays a critical role in encouraging compliance within the securities industry, which in turn also helps to protect investors and the securities market(s) generally.
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