A functional security and financial market is a necessity for every economy; otherwise, the economy is at risk of being paralyzed. This market must be regulated by the government for smooth running. 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.
For a long time the government has played a critical role in the regulation of the security and financial market in the economy. This is an essential market that almost everybody in the country depend on, and thus it will require some regulations. The government for instance will have to regulate the financial instutions because people depend on the for saving and borrowing. 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 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. Noncompliance is associated with multiple consequences such as enforcement proceeding. As a result the customers of the financial institutions will be safe.
There are several advantages of financial and security regulations in a country. 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. That means that the investors cannot risk losing 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.
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. 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.