JURISDICTION FOR REGULATIONS

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.

Aims for Regulation

The objectives of financial regulators are usually:
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.

Who Regulates the Financial Industry?

There are three types of financial regulators.
Banking
Bank regulators perform four functions that maintain trust in the system. First,
they examine banks' safety and soundness. Second, they make sure the bank
has adequate capital. Third, they insure deposits. Fourth, they evaluate any
potential threats to the entire banking system.

Financial Markets
The Securities and Exchange Commission is at the center of federal financial
regulations. It maintains the standards that regulate the stock markets. It reviews
corporate filing requirements. It oversees the Securities Investor Protection
Corporation. The SIPC insures customers' investment accounts in case a
brokerage company goes bankrupt. The SEC also regulates investment
management companies, including mutual funds.

Consumers
The Consumer Financial Protection Bureau is under the U.S. Treasury
Department. It makes sure banks don't overcharge for credit cards, debit cards,
and loans. It requires banks to explain risky mortgages to borrowers. Banks must
also verify that borrowers have an income.