A final series of protections is the regulatory regime that applies to all broker-dealers, including section 20 subsidiaries. The Securities Act of 1933 and the Securities Exchange Act of 1934 impose registration, capital and disclosure requirements, anti-fraud protections, and other investor-protection measures.
These laws, and their enforcement by the Securities and Exchange Commission, address many of the safety and soundness and conflict-of-interest concerns about affiliation of commercial and investment banks. I note that most of these important protections were not in place when the Glass-Steagall Act passed in 1933.