Video from the FREE course Stock Market Basics: [ Ссылка ]
Welcome to this video on financial regulators. In this video, you will learn about Financial regulators, who regulate various financial intermediaries, their roles and some examples of them.
Almost all geographies have entities who monitor and regulate the activities of the financial services industry. Traditionally, central banks play the role of ‘banker to the banks’. They also monitor and regulate other banks in geography.
Then there are financial regulators who regulate entities involved in the financial markets including brokers, exchanges, etc. Their primary purpose is to regulate the functions of the securities market. Their other objective is to maintain confidence in the financial markets. They layout core regulations and guidelines to which financial institutions are required to adhere to.
Also, there can be multiple regulatory entities that seek to regulate and protect those who participate in the respective industry they govern.
For example, the Securities and Exchange Commission (SEC) governs the securities market and the Commodity Futures Trading Commission (CFTC) governs the futures and options markets in the US.
Some of the major roles performed by financial regulators are
Supervision of stock exchanges, listed companies, investment management companies, etc.
Regulating and controlling the business on stock exchanges and other securities markets
Auditing the performance of the stock market
Investigation of abusive trading practices and fraud
Gathering information on the market
Maintaining smooth processes for clearing and settlement
And, providing information to investors to protect them from improper practices
Examples of financial regulators include the Securities and Exchange Board of India (SEBI), Securities & Exchange Commission (SEC) in the US, the Australian Securities and Investments Commission (ASIC) in Australia and others as shown here.
That is all for this video. In this video, you learned about various financial regulators and the roles they perform.
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