Information on Financial and Securities Regulation The financial and securities regulatory agencies are government functional bodies that provide oversight on financial markets as well as companies. There are different roles and responsibilities that these agencies play and have respectively. Notably, they work independently despite some having similar objectives. The existence of the agencies is indefinite despite their attraction of criticism on their efficiency. The following text contains several functions of the agencies. Stirring the Economy The stimulation of the economy through influencing overall credit conditions, liquidity and money is the function of some financial and security agencies. There is the application of tools that regulate the disposal and acquisition of treasury and agency securities by the agencies. The agencies regulate the interest rates and they also supervise the banking systems in bid to foster stability in the financial system. Issuing Insurance on Deposits There are agencies that provide protection on bank deposits that individuals and entities make in any bank. The insurance indemnifies the depositor against any loss of their money when an eventuality happens. There is a limitation on a number of individual’s or entity’s deposits that the insurance covers.
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Regulating Currency It is essential to ensure that banks compete with one another. It means that there should be a regulatory agency that oversees the provision of charters to the banks. The main objective of such an agency is to maintain a sound banking system through supervision, regulation and provision of charter to the banks. In addition, the agencies facilitate the efficiency of services of finance and banking.
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Oversight on Securities that are For Sale to the Public Some agencies ensure that members of the public trade in securities efficiently. These agencies act as middlemen between the customers and brokers. The agency has major roles that include training, licensing and testing of financial experts. On top of that, they provide mediation and arbitration on matters concerning the customers and brokers. Regulating 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. It is important to note that these agencies represent the state in their actions. Enforce Securities Law The agencies that enforce the securities laws act independently from governments. They are some of the most powerful and comprehensive agencies. Their coverage extends over stocks exchanges, options exchanges, options markets and electronic securities and exchanges markets. It is a fact that people do not deal directly with the agencies, but they usually feel the impact of the regulations without coming into contact with the agencies. Liquidity, credit markets and interest rates are some of the elements that carry a lot of impact on people. It means that the common person experiences an indirect influence from the agencies.