What does financial and securities regulation entail? Regulations set out the manner in which things must be done. A central regulator, which could be a government or non-government facility, is placed in charge of certain regulations. It is vital that institutions are regulated to avoid chaos.
The are various reasons why the financial and securities industry needs to be regulated. When the financial and securities industry is regulated well, instability will be avoided. Regulation of the financial and securities market ensures there is promotion of goods ethics in the handling of financial details. The importance of financial and securities regulation ensures that financial institutions can easily expand their financial products. Many people will not have doubts when taking part in financial and securities transactions if there is ideal regulation. Consumer protection is also another reason why the regulation of financial and securities markets is important.
Who is responsible for the regulation of the securities and financial industry? You will understand financial and securities regulation if you study financial law. Nations have their own financial regulating authorities. It is good for you to know that financial regulators can be depended on governments or not. The United States financial and securities market is regulated by different authorities including the SEC, CFTC, among others. You will find different financial and securities regulators in different countries.
Financial and securities institutions include stock exchange companies, investment organizations, banks, financial service providers, among others. It is good for you to know what constitutes the securities industry. It is good for you to know that the financial market has many products.
There are a number of laws that are applied in the regulation of the financial and securities industry. All countries have set rules that govern financial affairs in the country. You should be aware of some of the financial and securities laws applicable in the United States. You should fully understand all the regulations of the Securities Act of 1933 in the United States. The main aim of the Securities Act of 1933 is to make all the financial securities information available. The other objective of this act is the prevention of fraud involved in the trading of financial securities in the United States.
The securities in the United States is also regulated by the Securities Exchange Act of 1934. This act gives the Securities Exchange Commission the mandate to govern various aspects of the securities market. You should know that the debt securities laws are found in the Trust Indenture Act of 1939. Other laws applicable in the United States are the Investment Company Act of 1940, Jumpstart Our Business Startups Act of 2012, Sarbanes-Oxley Act of 2002, Investment Advisers Act of 1940, and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.