The Major Objectives of Financial and Securities Regulations
It is important to have integrity in trading and this is the reason why there are rules and regulations set up for them to adhere to. Banks, stock exchange, and lending institutions are serious in implementing these rules and regulations. The main beneficiary of these rules and regulations are the clients of these financial institutions. And you will notice that these regulations are not only focused on the client per se, but also aims to improve the environment in which they operation. It aims at the improvement of the overall performance of the financial and securities sector. It is usually the government who oversees and sees to it that these rules and regulations are strictly followed. Some places, however, assign non-government organizations to oversee the compliance of the finance and securities sector with these rules and regulations.

It is important for persons having business dealings with these financial or securities firms to have a good knowledge of the regulations and how they work. You will find a few major objectives that summarizes these rules and regulations. You, as a client, should know what these regulations are, what they cover, and how they enable you to do good business with these firms. The financial and securities regulations or objectives are given below. Visit to view them.

The first major objective of these rules and regulations for financial and securities firms is for their clients to build trust in   them. For these clients, money is their most important possession. Clients need to build trust in these financial and securities firms with their money. And this is why the rules and regulations laid out for financial intuitions are very strict. Several integrity tests are given to banks and securities firms which they need to pass to be allowed to operate.

The stability of the finance and securities market is the second major objective of these rules and regulations. Like any other business, if they are not handled well, then they can just go out of business or be forced to close down suddenly. Clients and the economy will be destabilized if this takes place. There is no need to worry about this because this is also covered in the rules and regulations. It is mandatory, then, that all financial institutions report every new development prior to its implementation. This new development that they want to implement will not be allowed if it will lead to disruption of the whole financial sector. These measures from can help stabilize the financial sector.

The third major objective of these rules and regulations is the protection of the client. There are risks for the client when dealing with financial and securities firms. You can be given very low interest rates on your savings or high interest rates on your loans. The rules and regulations have set a limit or boundary  for financial institutions should follow and should not go beyond. Get more information about financial security here:
Financial and Securities Regulation info 7