Financial regulation is a broad set of policies that apply to the financial sector in most jurisdictions, justified by two main features of finance: systemic risk, which implies that the failure of financial firms involves public interest considerations; and information asymmetry , which justifies curbs on freedom of contract in selected areas of financial services, particularly those that involve retail clients and/or Principal–agent problems. An integral part of financial regulation is the supervision of designated financial firms and markets by specialized authorities such as securities commissions and bank supervisors.
In some jurisdictions, certain aspects of financial supervision are delegated to self-regulatory organizations. Financial regulation forms one of three legal categories which constitutes the content of financial law, the other two being market practices and case law.[1]
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In the early modern period, the Dutch were the pioneers in financial regulation.[2] The first recorded ban (regulation) on short selling was enacted by the Dutch authorities as early as 1610.
Aims of regulationedit
The objectives of financial regulators are usually:[3]
market confidence – to maintain confidence in the financial system
financial stability – contributing to the protection and enhancement of stability of the financial system
consumer protection – securing the appropriate degree of protection for consumers.
reduce financial crime
regulate foreign participation
Structure of supervisionedit
Acts empower organizations, government or non-government, to monitor activities and enforce actions.[4] There are various setups and combinations in place for the financial regulatory structure around the globe.[5][6]
Exchange acts ensure that trading on the floor of exchanges is conducted in a proper manner. Most prominent the pricing process, execution and settlement of trades, direct and efficient trade monitoring.[7][8]
Financial regulators ensure that listed companies and market participants comply with various regulations under the trading acts. The trading acts demands that listed companies publish regular financial reports, ad hoc notifications or directors' dealings. Whereas market participants are required to publish major shareholder notifications. The objective of monitoring compliance by listed companies with their disclosure requirements is to ensure that investors have access to essential and adequate information for making an informed assessment of listed companies and their securities.[9][10][11]
Asset management supervision or investment acts ensures the frictionless operation of those vehicles.[12]
Supervision of banks and financial services providersedit
Banking acts lay down rules for banks which they have to observe when they are being established and when they are carrying on their business. These rules are designed to prevent unwelcome developments that might disrupt the smooth functioning of the banking system. Thus ensuring a strong and efficient banking system.[13][14]
^Joanna Benjamin 'Financial Law' Oxford University Press
^Clement, Piet; James, Harold; Van der Wee, Herman (eds.): Financial Innovation, Regulation and Crises in History. (Routledge, 2014. xiii + 176 pp. ISBN9781848935044)
^, 2016-04-20, archived from the original on 2017-07-07, retrieved 2012-08-21
^De Caria, Riccardo (2011-09-23), What is Financial Regulation Trying to Achieve?, Riccardo De Caria, SSRN 1994472
^Reserve Bank of India, Department of Banking Supervision
^, archived from the original on 2016-03-05, retrieved 2012-08-05
Further readingedit
Labonte, Marc. (2017). Who Regulates Whom? An Overview of the U.S. Financial Regulatory Framework. Washington, D.C.: Congressional Research Service. 2017-12-05 at the Wayback Machine
Ana Carvajal, Jennifer Elliott: IMF Study Points to Gaps in Securities Market Regulation
IOSCO: Objectives and Principles of Securities Regulation (PDF-Datei 67 Seiten)
November 18, 2023
financial, regulation, broad, policies, that, apply, financial, sector, most, jurisdictions, justified, main, features, finance, systemic, risk, which, implies, that, failure, financial, firms, involves, public, interest, considerations, information, asymmetry. Financial regulation is a broad set of policies that apply to the financial sector in most jurisdictions justified by two main features of finance systemic risk which implies that the failure of financial firms involves public interest considerations and information asymmetry which justifies curbs on freedom of contract in selected areas of financial services particularly those that involve retail clients and or Principal agent problems An integral part of financial regulation is the supervision of designated financial firms and markets by specialized authorities such as securities commissions and bank supervisors In some jurisdictions certain aspects of financial supervision are delegated to self regulatory organizations Financial regulation forms one of three legal categories which constitutes the content of financial law the other two being market practices and case law 1 Contents 1 History 2 Aims of regulation 3 Structure of supervision 3 1 Securities market regulation 3 2 Supervision of banks and financial services providers 4 Financial regulatory authorities 5 See also 6 References 7 Further reading 8 External linksHistory editThis section needs expansion You can help by adding to it November 2023 In the early modern period the Dutch were the pioneers in financial regulation 2 The first recorded ban regulation on short selling was enacted by the Dutch authorities as early as 1610 Aims of regulation editThe objectives of financial regulators are usually 3 market confidence to maintain confidence in the financial system financial stability contributing to the protection and enhancement of stability of the financial system consumer protection securing the appropriate degree of protection for consumers reduce financial crime regulate foreign participationStructure of supervision editActs empower organizations government or non government to monitor activities and enforce actions 4 There are various setups and combinations in place for the financial regulatory structure around the globe 5 6 Securities market regulation edit Main article Securities commission Exchange acts ensure that trading on the floor of exchanges is conducted in a proper manner Most prominent the pricing process execution and settlement of trades direct and efficient trade monitoring 7 8 Financial regulators ensure that listed companies and market participants comply with various regulations under the trading acts The trading acts demands that listed companies publish regular financial reports ad hoc notifications or directors dealings Whereas market participants are required to publish major shareholder notifications The objective of monitoring compliance by listed companies with their disclosure requirements is to ensure that investors have access to essential and adequate information for making an informed assessment of listed companies and their securities 9 10 11 Asset management supervision or investment acts ensures the frictionless operation of those vehicles 12 Supervision of banks and financial services providers edit Main article Bank regulation Banking acts lay down rules for banks which they have to observe when they are being established and when they are carrying on their business These rules are designed to prevent unwelcome developments that might disrupt the smooth functioning of the banking system Thus ensuring a strong and efficient banking system 13 14 Financial regulatory authorities editMain article List of financial regulatory authorities by jurisdictionSee also editBank regulation Finance Financial economics Financial markets Financial ethics Financial regulation in India Financial repression Global financial system Group of Thirty Insurance law International Organization of Securities Commissions International Centre for Financial Regulation LabEx ReFi European Laboratory on Financial Regulation Macroprudential regulation Microprudential regulation Regulatory capture Regulatory economics Securities commission Commodity market Regulation of commodity markets Virtual currency law in the United StatesReferences edit Joanna Benjamin Financial Law Oxford University Press Clement Piet James Harold Van der Wee Herman eds Financial Innovation Regulation and Crises in History Routledge 2014 xiii 176 pp ISBN 9781848935044 UK FSA statutory objectives 2016 04 20 archived from the original on 2017 07 07 retrieved 2012 08 21 De Caria Riccardo 2011 09 23 What is Financial Regulation Trying to Achieve Riccardo De Caria SSRN 1994472 Luxembourg CSSF structure and organisation German BAFin supervision organisation archived from the original on 2012 08 04 Suisse finma stock exchange supervision German BAFin stock exchange supervision archived from the original on 2012 07 22 Finland FSA supervion of listed companies archived from the original on 2012 10 12 retrieved 2012 08 05 Saudi Arabia market supervision archived from the original on 2013 05 18 retrieved 2012 08 05 Borsa Italiana listed stock supervision permanent dead link US SEC Division of Investment Management Reserve Bank of India Department of Banking Supervision Luxembourg CSSF Supervision of Banks archived from the original on 2016 03 05 retrieved 2012 08 05Further reading editLabonte Marc 2017 Who Regulates Whom An Overview of the U S Financial Regulatory Framework Washington D C Congressional Research Service Archived 2017 12 05 at the Wayback Machine Reinhart Carmen Rogoff Rogoff 2009 This Time is Different Eight Centuries of Financial Folly Princeton U Pr ISBN 978 0 691 15264 6 Simpson D Meeks G Klumpes P amp Andrews P 2000 Some cost benefit issues in financial regulation London Financial Services Authority External links editSecurities Lawyer s Deskbook from the University of Cincinnati College of Law Ana Carvajal Jennifer Elliott IMF Study Points to Gaps in Securities Market Regulation IOSCO Objectives and Principles of Securities Regulation PDF Datei 67 Seiten Retrieved from https en wikipedia org w index php title Financial regulation amp oldid 1184829917, wikipedia, wiki, book, books, library,
