Financial Regulation

Financial regulation refers to the oversight and enforcement of rules designed to maintain the integrity, stability, and fairness of financial markets and institutions. Regulatory bodies, such as the Securities and Exchange Commission (SEC) in the U.S., create guidelines to protect investors, prevent fraud, and ensure transparency. Regulations cover areas like trading practices, financial disclosures, risk management, and consumer protection, aiming to minimize systemic risks.

Example

The Dodd-Frank Act, enacted after the 2007-2008 financial crisis, introduced stricter regulations on banks and financial institutions to prevent excessive risk-taking and enhance market transparency.