Financial regulations are rules and guidelines set by governments and financial authorities to maintain the stability and integrity of the financial system. They aim to:
- Protect consumers and investors.
- Prevent financial crimes like fraud and money laundering.
- Ensure fair competition within the financial market.
Some globally recognized regulatory frameworks include:
- Basel Accords: Standards for risk management and capital adequacy.
- MiFID II (Markets in Financial Instruments Directive): EU regulations promoting transparency and investor protection.
- Dodd-Frank Act: U.S. legislation addressing systemic risks and consumer protection.