A Guide on Financial and Security Regulation
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 economy will be very stable after the regulation of the financial and security market. Also, regulation of the market will ensure that there is customer protection, market confidence, and financial crimes are eliminated.
For a long time the government has played a critical role in the regulation of the security and financial market in the economy. 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. For instance, people save their money on financial institution; it is therefore necessary for the government to control these institutions. 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 US government has established various state agencies which are mandated to set regulation and oversee its implementation. The main ones are the Federal Reserve Board and Exchange Commission. The agencies are mandated to ensure that the financial and security institutions are strictly abiding by the set regulations. Noncompliance is associated with multiple consequences such as enforcement proceeding. As a result the customers of the financial institutions will be safe.
When the regulations have been implemented, they will come with various benefits. Clients of the financial institutions will be protected from scams associated with the credit card, mortgages, and other financial products. The investors will also benefit from any unethical actions in the market. The results is that the investors cannot lose their money. The state agencies will require the financial institution to avoid too much risking of the customers money. The government will ensure that monopolies are offering standard services and services.
Chris Brummer recommend people that they should at least have a basic understanding of the financial and security regulations. The financial expert in additions requested people to have an understanding of how they use their finance at a personal level. With the knowledge, it will be easy for you to make the correct decisions on financial matters. Another instance, when the financial and security regulation knowledge is required, is when you are taking debt. With the info, you will quickly understand the terms of the debt.
As you read, it is clear that regulation of the security and financial market is critical. Continuous efforts should be put into this sector by both the government and private sector to ensure that the market is very safe.