Financial Regulation Law and Legal Definition

Financial regulation is the supervision of financial markets and institutions. Financial regulations necessitate financial institutions to certain requirements, restrictions and guidelines. The primary purpose of a financial regulation is to maintain the integrity of the financial system. Financial regulation protects investors, maintain orderly markets and promote financial stability.

  • Financial regulations aims to :
  • Enforce applicable laws; :
  • prosecute cases of market misconduct; :
  • license providers of financial services; :
  • protect clients; :
  • investigate complaints; and :
  • maintain confidence in the financial system. :

Financial regulations can be handled by government or non-government organizations. For example, the US Securities and Exchange Commission (SEC) enforces American securities laws.