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. 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.
For a long time the government has played a critical role in the regulation of the security and financial market in the economy. This is an essential market that almost everybody in the country depend on, and thus it will require some regulations. For instance, people save their money on financial institution; it is therefore necessary for the government to control these institutions. Beside the government, financial specialists like Chris Brummer have been fighting for the right security and financial regulations.
in support of the regulation of the security and the financial market, the US government has established several regulatory bodies. 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. As a result the customers of the financial institutions will be safe.
The security and financial regulation has many benefits. Customers will be the first beneficiaries; they are going to be protected from the credit card, mortgages, and other products frauds. Beside the customers, the investors will also be protected from any unethical thing in the security and financial market. That means that the investors cannot risk losing their money. 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.
Every citizen should have basic information about financial and security regulation; these were the recommendation from Chris Brummer. Chris Brummer further urged people to start by understand finance at individual levels. With the knowledge, it will be easy for you to make the correct decisions on financial matters. 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 read, it is clear that regulation of the security and financial market is critical. For the benefit of the customers and investors, the government and financial expert must review the regulations to strengthen them.