Every economy need a working security and financial market otherwise it is going to be paralyzed. This market must be regulated by the government for smooth running. The primary object of the regulation is to ensure that the economy is stable. The financial crimes will reduce, there will be market confidence, and clients will be protected when there is regulation of the security and financial market.
For many years, the state has been in the control of the security and financial market through imposition of various regulations. This is an essential market that almost everybody in the country depend on, and thus it will require some regulations. For instance, people save their money on financial institution; it is therefore necessary for the government to control these institutions. 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. 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. 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 state agencies will require the financial institution to avoid too much risking of the customers money. Finally, regulation is directed to the monopolies to ensure that they do not produce defective products.
Every citizen should have basic information about financial and security regulation; these were the recommendation from Chris Brummer. 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. When you are taking debt, you will also need the knowledge of the financial and security regulations. With the info, you will quickly understand the terms of the debt.
The regulation of the security and financial market is essential. Continuous efforts should be put into this sector by both the government and private sector to ensure that the market is very safe.