The Essentials of Finances – Revisited

Information on Financial and Securities Regulation

The government functional bodies include the financial and securities agencies of regulation, and they supervise the financial companies and markets. These agencies are mandated to take up different roles and responsibilities. They operate autonomously despite having similar objectives. There is criticism on the efficiency of the agencies, but their existence is indefinite. The several functions of the regulatory agencies appear in the text below.

Stimulating the Economy
Some financial and security agencies work to stimulate the economy through influencing overall credit conditions, money and liquidity. There is the application of tools that regulate the disposal and acquisition of treasury and agency securities by the agencies. There is a regulation of interest rates and supervision of the banking system by the agencies as they bring the financial system’s stability.

Providing Insurance on Deposits
There are agencies that offer protection on individual’s and entities’ bank deposits. The insurance prevents a depositor from losing money when an eventuality takes place. The amount of deposit from an individual or an entity is usually limited to the provision of the insurance.
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Controlling Currency
It is essential to ensure that banks compete with one another. This translates to the necessity of a regulatory agency that supervises the bank charter provision. The main objective of such an agency is to maintain a sound banking system through supervision, regulation and provision of charter to the banks. The agencies also facilitate efficient banking as well as financial services.
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Oversight on Securities that are For Sale to the Public
Some agencies foster efficiency when members of public want to trade in securities. These agencies bridge the gap between the customers and brokers. The main roles of the agencies is to train, license and test financial professionals. Additionally, they arbitrate and mediate on disagreements that arise between customers and brokers.

Supervising Insurance
The operations of the insurance industry are monitored, reviewed and overseen by the agencies. There is monitoring, reviewing and overseeing the operations of the insurance industry by the agencies. Their main objective is to offer consumer protection, carry out criminal investigations, and enforce legal actions, among other activities that bring sanity in the insurance industry. Notably, these agencies act on behalf of the state.

Impose Securities Law
The agencies that enforce the securities laws act independently from governments. They are more powerful and comprehensive than other agencies. Their coverage extends over stocks exchanges, options exchanges, options markets and electronic securities and exchanges markets.

Even though people do not deal directly with financial and securities agencies, they usually feel the impact of the regulations indirectly. Liquidity, credit markets and interest rates are some of the elements that carry a lot of impact on people. It translates into an indirect effect on a common person by the agencies.