What Do You Know About
August 7, 2020
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. The reason why the government has to have a lot of control is because this is a sector that almost everyone depend on. The government for instance will have to regulate the financial instutions because people depend on the for saving and borrowing. Beside the government, financial specialists like Chris Brummer have been fighting for the right security and financial regulations.
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.
When the regulations have been implemented, they will come with various benefits. Customers will be the first beneficiaries; they are going to be protected from the credit card, mortgages, and other products frauds. Also the investors will be shielded from the unscrupulous activities that may occur 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. Finally, regulation is directed to the monopolies to ensure that they do not produce defective products.
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 further urged people to start by understand finance at individual levels. The knowledge is necessary as it will help you make the right financial decision. When you are taking debt, you will also need the knowledge of the financial and security regulations. You will know the right interest and when you will settle the debts.
As you read, it is clear that regulation of the security and financial market is critical. It is thus necessary for the government and financial expert to reviews the regulation for the maximum protection of the investors and customers.