by xcomputers
What comes to mind when you hear financial and securities regulation? Regulations set out the manner in which things must be done. There is usually a central facility that makes sure all the institutions that fall in a certain category follow the set guidelines. Regulation is crucial if order has to be maintained in carrying out various operations in a certain industry.
The regulations of the financial and securities market is equally important. When the financial and securities industry is regulated well, instability will be avoided. Regulation of the financial and securities market ensures there is promotion of goods ethics in the handling of financial details. It is also possible to expand a certain financial market if there is proper regulation. Many people will not have doubts when taking part in financial and securities transactions if there is ideal regulation. Financial and securities markets must be regulated to ensure that consumers are not manipulated by the available systems.
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 jurisdictions have varying financial regulators. It is good for you to know that financial regulators can be depended on governments or not. There are different financial regulators in the United States. 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. The financial market has a broad range of products.
It is vital that you understand which laws are applicable in the financial market. All countries have set rules that govern financial affairs in the country. The United States financial and securities market is regulated by a number of financial laws. One of the commonly applied laws in the USA is the Securities Act of 1933. The main aim of the Securities Act of 1933 is to make all the financial securities information available. The other objective of this act is the prevention of fraud involved in the trading of financial securities in 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. 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.