Live revision! Join us for our free exam revision livestreams Watch now

Topics

Financial Regulation

Financial regulation is the set of laws, rules, and guidelines that govern the financial industry and its participants, such as banks, investment firms, and insurance companies.

The goal of financial regulation is to ensure that the financial system operates in a fair, transparent, and stable manner, and to protect investors, consumers, and the broader economy from financial crises and other risks. Some common areas of financial regulation include:

  • Disclosure requirements: Financial institutions must disclose certain information about their products and services to potential investors.
  • Anti-money laundering (AML) and know-your-customer (KYC) regulations: These regulations are aimed at preventing money laundering and terrorist financing.
  • Capital requirements: Banks and other financial institutions must maintain a certain amount of capital (money) to support their activities and protect against losses.
  • Consumer protection: Regulations protect consumers from unfair or deceptive practices by financial institutions.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.