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. 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 many years, the state has been in the control of the security and financial market through imposition of various regulations. 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. When a company does not follow the regulation, there is no doubt that it will be faced by the enforcement proceeding. Consequently, the investors and customers will have a sense of safety.
The security and financial regulation has many benefits. Clients of the financial institutions will be protected from scams associated with the credit card, mortgages, and other financial products. The investors will also benefit from any unethical actions in the market. The benefit is that the investors will not easily lose their money because of the regulations put into action. Financial firms will not be required to put a lot of risk on the money of the client. 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. The knowledge is necessary as it will help you make the right financial decision. 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 have already seen, financial and security regulation is important. For the benefit of the customers and investors, the government and financial expert must review the regulations to strengthen them.