Financial Regulation.

December 23, 2020 By Swapnil Suryawanshi

Financial regulation is a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the stability and integrity of the financial system. This may be handled by either a government or non-government organization. Financial regulation has also influenced the structure of banking sectors by increasing the variety of financial products available. Financial regulation forms one of three legal categories which constitutes the content of financial law, the other two being market practices and case law.

History :

Further information: Financial history of the Dutch Republic

In the early modern period, the Dutch were the pioneers in financial regulation. The first recorded ban (regulation) on short selling was enacted by the Dutch authorities as early as 1610.

Why is financial regulation important :

Regulation helps make sure that banks have good management so they don’t make bad investments or are too risky. … This should help make bank runs less likely. Throughout 2018, regulation is also being used in large UK banks to ‘ring-fence’ some services from other parts of the bank.

What is financial regulation and why does it matter | Central Bank of  Ireland | Central Bank of Ireland

What is the role of financial regulators :

The main responsibilities of financial regulators are to enforce applicable laws, try to prevent cases of market manipulation, ensure the competence of financial service providers, execute regular inspections, protect traders and clients, and investigate and prosecute misconduct, such as insider trading.

Who are the 4 main regulators of finance sector :

There are four members: the Australian Prudential Regulation Authority (APRA), the Australian Securities and Investments Commission (ASIC), the Australian Treasury and the Reserve Bank of Australia, which chairs the Council. It is a non-statutory group, without regulatory or policy decision-making powers.