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Is Security and Financial Regulations Necessary?
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. The financial crimes will reduce, there will be market confidence, and clients will be protected when there is regulation of the security and financial market.
The security and financial market has been controlled by the government for quite some time. It is worth to remember that everybody depend on the financial and security market and that is the reason why the government has to have interest in this vital sector. 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. The Exchange Commission and Federal Reserve Board have been established for the regulation purposes. These agencies monitors every aspect of the financial firm to ensure that they are following the regulations that have been put in place. In the situation where a company does not comply, it is going to face enforcement proceeding. At the end, customers and investors are going to be assured that their money is saved.
There are several advantages of financial and security regulations in a country. Customers will be the first beneficiaries; they are going to be protected from the credit card, mortgages, and other products frauds. The investors will also benefit from any unethical actions in the market. That means that the investors cannot risk losing their money. The regulation will also protect the customers as the companies are not allowed to too much risking of the customers money. Finally, regulation is directed to the monopolies to ensure that they do not produce defective products.
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 taking debt, you will also need the knowledge of the financial and security regulations. You will know the right interest and when you will settle the debts.
As you have already seen, financial and security regulation is important. It is thus necessary for the government and financial expert to reviews the regulation for the maximum protection of the investors and customers.