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 regulations of the market is necessary as it will stabilize the economy. 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.
The security and financial market has been controlled by the government for quite some time. 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. 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. When a company does not follow the regulation, there is no doubt that it will be faced by the enforcement proceeding. As a result the customers of the financial institutions will be safe.
The security and financial regulation has many benefits. First the customer of the financial market is going to be protected from crimes that are related to the credit cards, mortgages, and other products in this market. Also the investors will be shielded from the unscrupulous activities that may occur in the security and financial market. The results is that the investors cannot lose their money. 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.
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. The knowledge is necessary as it will help you make the right financial decision. Another instance, when the financial and security regulation knowledge is required, is when you are taking debt. This is because it will help you understand the terms of payment.
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.