To ensure that the economy functional, a working financial and security market is necessary. This market must be regulated by the government for smooth running. The economy will be very stable after the regulation of the financial and security market. 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. 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, people in the private sector like Chris Brummer has been struggling to ensure that the security and financial market is regulated.
in support of the regulation of the security and the financial market, the US government has established several regulatory bodies. These agencies include the Federal Reserve Board, Security and Exchange Commission. The agencies are mandated to ensure that the financial and security institutions are strictly abiding by the set regulations. When a company does not follow the regulation, there is no doubt that it will be faced by the enforcement proceeding. At the end, customers and investors are going to be assured that their money is saved.
The security and financial regulation has many 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 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 also control the monopolies to ensure that they are not producing defective products and poor services.
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. This is because it will help you understand the terms of payment.
As you have already seen, financial and security regulation is important. It is thus necessary for the government and financial expert to reviews the regulation for the maximum protection of the investors and customers.
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