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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. Regulation of institutions is done by a central authority. Regulations are necessary to bring order in certain operations.

It is vital that the financial and securities market is regulated. When the financial and securities industry is regulated well, instability will be avoided. Regulations promotes integrity as well. The importance of financial and securities regulation ensures that financial institutions can easily expand their financial products. 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 regulates financial and securities markets? You will understand financial and securities regulation if you study financial law. Different jurisdictions have varying financial regulators. Financial regulations can be dependent or independent from government supervision. 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.

There are many players in the financial and securities industry. 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.

As a financial industry player, you need to understand all the laws that govern the financial market. Nations have their own financial laws. 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. This act is used to make sure that all the stakeholders get all the information about securities that are on public sale. The Securities Act of 1933 was made to avoid fraud and other malicious activities when selling financial securities.

The securities market in the USA is also regulated by the Securities Exchange Act of 1934. The Securities Exchange Act of 1934 gives the SEC powers to perform various activities. 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.
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