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Essential Aspects of Financial and Securities Regulation

What does financial and securities regulation entail? Regulation is made up of rules that must be followed, restrictions that must be adhered to, as well as guidelines to carry out certain things. 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. One of the benefits of regulating the securities industry is because it avoids economic instability in financial institutions. Regulation of the financial and securities market ensures there is promotion of goods ethics in the handling of financial details. Industry players will be able to increase the number of products they deal with if there is proper regulation in the financial and securities industry. There will also be enhanced confidence in financial institutions if there is a good regulatory authority in the financial and securities market. Consumer protection is also another reason why the regulation of financial and securities markets is important.

It is good for you to understand who regulates financial and securities market? The regulation of financial and securities industry falls under financial law. Nations have their own financial regulating authorities. Financial regulators can be government based or non-government based. The financial regulatory authorities in the United States include the SEC (Securities and Exchange Commission), FINRA, CFTC, FDIC, OCC, NCUA, and the CFPB. You will find different financial and securities regulators in different countries.

There are many players in the financial and securities industry. 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.

As a financial industry player, you need to understand all the laws that govern the financial market. The laws vary from country to country. The United States financial and securities market is regulated by a number of financial laws. One of the commonly applied laws in the USA is the Securities Act of 1933. One of the objectives of the Securities Act of 1933 is to ensure that clients have enough details on publicly traded financial securities. This act is also applied to avoid fraud and deceit in the securities market of the United States.

The securities market in the USA is also regulated by the Securities Exchange Act of 1934. The Securities Exchange Act of 1934 gives the SEC powers to perform various activities. Debt securities are regulated by 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.

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