A functional security and financial market is a necessity for every economy; otherwise, the economy is at risk of being paralyzed. This market must be regulated by the government for smooth running. 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. 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. A good example of an institutions that will need regulation is the bank; people depend on it for borrowing and saving. In addition to the government effort, experts in the private sector like Chris Brummer have tirelessly worked to ensure that correct security and financial regulations have been implemented.
in support of the regulation of the security and the financial market, the US government has established several regulatory bodies. The main ones are the Federal Reserve Board and Exchange Commission. These agencies monitors every aspect of the financial firm to ensure that they are following the regulations that have been put in place. Noncompliance is associated with multiple consequences such as enforcement proceeding. At the end, customers and investors are going to be assured that their money is saved.
When the regulations have been implemented, they will come with various benefits. Clients of the financial institutions will be protected from scams associated with the credit card, mortgages, and other financial products. Beside the customers, the investors will also be protected from any unethical thing 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. Financial firms will not be required to put a lot of risk on the money of the client. The government also control the monopolies to ensure that they are not producing defective products and poor services.
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. 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. This is because it will help you understand the terms of payment.
As you have already seen, financial and security regulation is important. For the benefit of the customers and investors, the government and financial expert must review the regulations to strengthen them.