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 economy will be very stable after the regulation of the financial and security market. Also, regulation of the market will ensure that there is customer protection, market confidence, and financial crimes are eliminated.
For many years, the state has been in the control of the security and financial market through imposition of various regulations. 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. In addition to the government effort, experts in the private sector like Chris Brummer have tirelessly worked to ensure that correct security and financial regulations have been implemented.
The US government has established various state agencies which are mandated to set regulation and oversee its implementation. The Exchange Commission and Federal Reserve Board have been established for the regulation purposes. These agencies monitors every aspect of the financial firm to ensure that they are following the regulations that have been put in place. In the situation where a company does not comply, it is going to face enforcement proceeding. Consequently, the investors and customers will have a sense of safety.
When the regulations have been implemented, they will come with various 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. 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 state agencies will require the financial institution to avoid 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. 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.
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.