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 primary object of the regulation is to ensure that the economy is stable. Also, regulation of the market will ensure that there is customer protection, market confidence, and financial crimes are eliminated.
For a long time the government has played a critical role in the regulation of the security and financial market in the economy. The reason why the government has to have a lot of control is because this is a sector that almost everyone depend on. The government for instance will have to regulate the financial instutions because people depend on the for saving and borrowing. Beside the government, financial specialists like Chris Brummer have been fighting for the right security and financial regulations.
The government of the United States has established several agencies; they are meant to draft regulations and to ensure that they are following. The main ones are the Federal Reserve Board and Exchange Commission. The agencies are mandated to ensure that the financial and security institutions are strictly abiding by the set regulations. When a company does not follow the regulation, there is no doubt that it will be faced by the enforcement proceeding. As a result the customers of the financial institutions will be safe.
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. Also the investors will be shielded from the unscrupulous activities that may occur 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 also control the monopolies to ensure that they are not producing defective products and poor services.
Chris Brummer recommend people that they should at least have a basic understanding of the financial and security regulations. Chris Brummer was saying that during his speeches where he urged people to commence understanding their finance from a personal level. When you understand your finance, it will be easy to make an informed 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. Continuous efforts should be put into this sector by both the government and private sector to ensure that the market is very safe.