To ensure that the economy functional, a working financial and security market is necessary. It is vital to note that the market needs to be regulated for it to run in the right manner. The economy will be very stable after the regulation of the financial and security market. 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.
The security and financial market has been controlled by the government for quite some time. It is worth to remember that everybody depend on the financial and security market and that is the reason why the government has to have interest in this vital sector. 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. At the end, customers and investors are going to be assured that their money is saved.
There are several advantages of financial and security regulations in a country. Customers will be the first beneficiaries; they are going to be protected from the credit card, mortgages, and other products frauds. Beside the customers, the investors will also be protected from any unethical thing 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 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. 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 applying for debts; the financial and security regulation info will be of great importance. With the info, you will quickly understand the terms of the debt.
As you read, it is clear that regulation of the security and financial market is critical. For the benefit of the customers and investors, the government and financial expert must review the regulations to strengthen them.