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Vital Characteristics of Financial and Securities Regulation

What does financial and securities regulation entail? Regulations set out the manner in which things must be done. A central regulator, which could be a government or non-government facility, is placed in charge of certain regulations. Regulation is crucial if order has to be maintained in carrying out various operations in a certain industry.

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. Regulations promotes integrity as well. It is also possible to expand a certain financial market if there is proper regulation. The regulation of financial and securities markets ensures that that clients do not lose confidence in the operation of financial institutions. Financial and securities markets must be regulated to ensure that consumers are not manipulated by the available systems.

Who regulates financial and securities markets? You will understand financial and securities regulation if you study financial law. Different jurisdictions have varying financial regulators. Financial regulators can be government based or non-government based. The United States financial and securities market is regulated by different authorities including the SEC, CFTC, among others. Each country has their own financial and securities regulations authority.

Financial and securities institutions include stock exchange companies, investment organizations, banks, financial service providers, among others. Financial securities include derivatives, debt securities, and equity securities. 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. All countries have set rules that govern financial affairs in the country. There are a number of laws that govern the securities market in the United States. You should fully understand all the regulations of the Securities Act of 1933 in the United States. 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 in the United States is also regulated by the Securities Exchange Act of 1934. This act gives the Securities Exchange Commission the mandate to govern various aspects of the securities market. The other law is the Trust Indenture Act of 1939 which regulates debt securities. 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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