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Is Security and Financial Regulations Necessary?

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 primary object of the regulation is to ensure that the economy is stable. Other functions why these regulations are essential is because they ensure that citizens are protected, there is the confidence of the market, and the financial crimes have drastically reduced.

For many years, the state has been in the control of the security and financial market through imposition of various regulations. 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. For instance, people save their money on financial institution; it is therefore necessary for the government to control these institutions. 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.

The government of the United States has established several agencies; they are meant to draft regulations and to ensure that they are following. The Exchange Commission and Federal Reserve Board have been established for the regulation purposes. Financial and security institutions are strictly monitored to ensure that they are abiding by the set regulation. Noncompliance is associated with multiple consequences such as enforcement proceeding. Consequently, the investors and customers will have a sense of safety.

The security and financial regulation has many benefits. Clients of the financial institutions will be protected from scams associated with the credit card, mortgages, and other financial products. Also the investors will be shielded from the unscrupulous activities that may occur in the security and financial market. The results is that the investors cannot lose their money. The regulation will also protect the customers as the companies are not allowed to too much risking of the customers money. The government will ensure that monopolies are offering standard services and services.

According to financial expert Chris Brummer, every citizen is supposed to have at least an overview on how the financial and security system works. The financial expert in additions requested people to have an understanding of how they use their finance at a personal level. 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. This is because it will help you understand the terms of payment.

As you read, it is clear that regulation of the security and financial market is critical. Continuous efforts should be put into this sector by both the government and private sector to ensure that the market is very safe.

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