Financial regulation is a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the integrity of the financial system. This may be handled by either a government or non-government organization.
Aims of regulation
The specific aims of financial regulators are usually:
- To enforce applicable laws
- To prevent cases of market manipulation, such as insider trading
- To ensure competence of providers of financial services
- To protect clients, and investigate complaints
- To maintain confidence in the financial system