To ensure that the economy functional, a working financial and security market is necessary. The market will only operate smoothly if only it is regulated by the government. 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.
The security and financial market has been controlled by the government for quite some time. The reason why the government has to have a lot of control is because this is a sector that almost everyone depend on. A good example of an institutions that will need regulation is the bank; people depend on it for borrowing and saving. Beside the government, financial specialists like Chris Brummer have been fighting for the right security and financial regulations.
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. Financial and security institutions are strictly monitored to ensure that they are abiding by the set regulation. Noncompliance is associated with multiple consequences such as 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. Also the investors will be shielded from the unscrupulous activities that may occur in the security and financial market. The benefit is that the investors will not easily lose their money because of the regulations put into action. The state agencies will require the financial institution to avoid too much risking of the customers money. Finally, regulation is directed to the monopolies to ensure that they do not produce defective products.
Every citizen should have basic information about financial and security regulation; these were the recommendation from Chris Brummer. Chris Brummer was saying that during his speeches where he urged people to commence understanding their finance from a personal level. 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. You will know the right interest and when you will settle the debts.
The regulation of the security and financial market is essential. For the benefit of the customers and investors, the government and financial expert must review the regulations to strengthen them.