Financial and Securities Regulation Information
What comes to mind when you hear financial and securities regulation? A regulated institution or facility must carry out its activities according to the set rules and services. 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. Regulation ensures that there is stability in global financial industries. 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. It is good for you to know that the regulation of the financial industry is important to shield consumers from industry manipulation.
Who is responsible for the regulation of the securities and financial industry? You will understand financial and securities regulation if you study financial law. Different countries have different financial regulators. Financial regulation authority can be government or non-government institutions. The United States financial and securities market is regulated by different authorities including the SEC, CFTC, among others. Different countries are regulated by varying industry regulators.
Financial and securities institutions include stock exchange companies, investment organizations, banks, financial service providers, among others. Securities include debt securities such as bonds and debentures, equity securities such as common stock, and derivatives such as futures, forwards, swaps and options. Other financial instruments include insurance products.
It is vital that you understand which laws are applicable in the financial market. Nations have their own financial laws. There are a number of laws that govern the securities market in the United States. Securities Act of 1933 is a popular law. 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 law ensures that the SEC has the powers to discipline, register, regulate, get periodic financial reporting information, among others. 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.