Health Victory


Why People Think Professors Are A Good Idea

Benefits of Having Single and Multiple Securities Regulators

When the financial markets are regulated, the results can be both positive and negative. Stock market investors prefer regulation of the industry for a number of reasons. For example, regulation prohibits rogue activities such as insider trading, which can leave investors with huge losses. In some countries, regulation work is left to a single body. In other cases, multiple players may regulate the same industry players. Any type of regulation has its pros and cons.

Rules Are Different Across the Globe
In every country around the world, there are regulatory bodies that are in charge of coming up and implementing policies related to the securities market. The main difference among the bodies is the extent to which they are involved in the financial industry.

In some jurisdictions, a single regulatory body is in charge of all matters related to the financial industry. In these countries, players in the financial sector have to engage with the regulator in one way or another. Examples of the areas that a regulators body may be in charge of include insurance, banking and trading securities. The body may make all the rules related to all financial transaction aspects of the country.

Having a single regulatory body in charge of the financial sector has its advantages. For example, players in the financial industry as well as investors will operate easily when they only have to comply with the regulations of a single body. Both players and investors can easily get the guidance they need regarding specific issues related to the financial sector. Finally, when one makes contact with the regulatory body, all their problems could be solved at one go.

Having a single regulator eliminates any gray areas or cracks in terms of enforcement. Any issues that player in the securities or other areas of the financial markets may have are easy to address.

Having More than One Regulator
Some countries have divided their financial industry into subsectors and tasked various bodies with the regulatory processes. For example, all matters related to insurance may be regulated at the state level. However, the central government may take on the task of regulating the banking sector. There may also be other regulatory agencies in charge of sectors such as securities, futures trade and so on.

You should also know the benefits and drawbacks of having more than one regulator in an industry. For instance, when there are multiple regulators in the industry, players and investors are likely to get specialized help. It would be nearly impossible to provide specialized help if there was only one regulator in the country. Apart from this, having multiple regulators encourages cooperation since none of the players has unlimited power.

The above are the advantages and disadvantages of having both single and multiple regulators in the financial sector.

A Simple Plan For Investigating Professors

5 Takeaways That I Learned About Professionals