– Getting Started & Next Steps
Every economy need a working security and financial market otherwise it is going to be paralyzed. It is vital to note that the market needs to be regulated for it to run in the right manner. The primary object of the regulation is to ensure that the economy is stable. Other functions why these regulations are essential is because they ensure that citizens are protected, there is the confidence of the market, and the financial crimes have drastically reduced.
For many years, the state has been in the control of the security and financial market through imposition of various regulations. It is worth to remember that everybody depend on the financial and security market and that is the reason why the government has to have interest in this vital sector. A good example of an institutions that will need regulation is the bank; people depend on it for borrowing and saving. Beside the government, people in the private sector like Chris Brummer has been struggling to ensure that the security and financial market is regulated.
The government of the United States has established several agencies; they are meant to draft regulations and to ensure that they are following. These agencies include the Federal Reserve Board, Security and Exchange Commission. These agencies monitors every aspect of the financial firm to ensure that they are following the regulations that have been put in place. In the situation where a company does not comply, it is going to face enforcement proceeding. Consequently, the investors and customers will have a sense of safety.
There are several advantages of financial and security regulations in a country. Customers will be the first beneficiaries; they are going to be protected from the credit card, mortgages, and other products frauds. Beside the customers, the investors will also be protected from any unethical thing in the security and financial market. The benefit is that the investors will not easily lose their money because of the regulations put into action. The regulation will also protect the customers as the companies are not allowed to too much risking of the customers money. The government will ensure that monopolies are offering standard services and services.
According to financial expert Chris Brummer, every citizen is supposed to have at least an overview on how the financial and security system works. Chris Brummer was saying that during his speeches where he urged people to commence understanding their finance from a personal level. When you understand your finance, it will be easy to make an informed decision. When you are taking debt, you will also need the knowledge of the financial and security regulations. This is because it will help you understand the terms of payment.
The regulation of the security and financial market is essential. For the benefit of the customers and investors, the government and financial expert must review the regulations to strengthen them.
