Every economy need a working security and financial market otherwise it is going to be paralyzed. The market will only operate smoothly if only it is regulated by the government. The regulations of the market is necessary as it will stabilize the economy. 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 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. A good example of an institutions that will need regulation is the bank; people depend on it for borrowing and saving. Beside the government, financial specialists like Chris Brummer have been fighting for the right security and financial regulations.
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. 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. At the end, customers and investors are going to be assured that their money is saved.
The security and financial regulation has many benefits. Customers will be the first beneficiaries; they are going to be protected from the credit card, mortgages, and other products frauds. The investors will also benefit from any unethical actions in the 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 also control the monopolies to ensure that they are not producing defective products and poor 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. The financial expert in additions requested people to have an understanding of how they use their finance at a personal level. When you understand your finance, it will be easy to make an informed decision. Another instance, when the financial and security regulation knowledge is required, is when you are taking debt. You will know the right interest and when you will settle the debts.
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.