Financial regulation

Rules or restrictions for financial institutions

Part of a series on financial services

Financial regulation

Types of regulations

* Money Laundering
* Capital requirements
* Bank regulations
* Basel accords
* International Financial Reporting Standards
* Fund governance
* Reserve requirement

Concepts

* Accounting scandals
* Bank run
* Know your customer
* Ponzi scheme
* Securities fraud
* Too big to fail

Regulatory agencies

* Central banks
* Securities commissions
* List of financial regulatory authorities by country
* Financial Action Task Force on Money Laundering
* Bank for International Settlements
* World Bank

Regulatory terms

* Fractional reserve banking
* Offshore banking
* Tax haven
* Money service business
* Global financial system
* Financial integration
* Systemically important financial institution

Related topics

Financial market (participants)

* Financial law
* Corporate finance
* Personal finance
* Public finance
* Banking
* List of banks

* v
* t
* e

Part of a series on

Finance

Markets

|  Assets

* Asset (economics)
* Bond
* Asset growth
* Capital asset
* Commodity
* Derivatives
* Domains
* Equity
* Foreign exchange
* Money
* Over-the-counter
* Private equity
* Real estate
* Spot
* Stock

Participants

* Angel investor
* Bull (stock market speculator)
* Financial planner
* Investor
* institutional
* Retail
* Speculator

Locations

* Financial centres
* Offshore financial centres
* Conduit and sink OFCs

Instruments

* Bond
* Cash
* Collateralised debt obligation
* Credit default swap
* Time deposit (certificate of deposit)
* Credit line
* Deposit
* Derivative
* Futures contract
* Indemnity
* Insurance
* Letter of credit
* Loan
* Mortgage

* Option (call
* exotic
* put)

* Performance bonds
* Repurchase agreement
* Stock
* Security
* Syndicated loan
* Synthetic CDO

Corporate

|  General

* Accounting
* Audit
* Capital budgeting
* Capital structure
* Corporate finance
* Credit rating agency
* Enterprise risk management
* Enterprise value
* Risk management
* Financial statements

Transactions

* Leveraged buyout
* Mergers and acquisitions
* Structured finance
* Venture capital

Taxation

* Base erosion and profit shifting (BEPS)
* Corporate tax haven
* Tax inversion
* Tax haven
* Transfer pricing

Personal

* Credit / Debt
* Employment contract
* Financial planning
*     * Retirement
* Student loan

Public

|  Government spending

* Final consumption expenditure
*     * Operations
* Redistribution

* Transfer payment

Government revenue

*     * Taxation
* Deficit spending

*     * Budget (balance)
* Debt

* Non-tax revenue
* Warrant of payment

Banking

* Central bank
* Deposit account
* Fractional-reserve
* Full-reserve
* Investment banking
* Loan
* Money supply

* Lists of banks

|  Bank regulation

* Banking license
* Basel Accords
* Bank for International Settlements
* Financial Stability Board
* Deposit insurance
* Separation of investment and retail banking

Regulation · Financial law

* International Financial Reporting Standards
* ISO 31000
* Professional certification
* Fund governance

Economic history

* Private equity and venture capital
* Recession
* Stock market bubble
* Stock market crash
* Accounting scandals

* Outline
* Business and Economics portal
* Money portal

* v
* t
* e

Part of a series on financial services

Banking

Types of banks

* Advising
* Banq
* Bulge bracket
* Central
* Commercial
* Community development
* Cooperative
* Credit union
* Custodian
* Depository
* Development
* Direct
* Export credit agency
* Investment
* Industrial
* Merchant
* Middle market
* Money center
* Mutual savings
* Neobank
* Offshore
* Participation
* Payments
* Postal savings
* Private
* Public
* Retail
* Savings
* Savings and loan
* Universal
* Wholesale
* Bank holding company

Lists of banks

Accounts · Cards

|  Accounts

* Christmas club
* Deposit
* Interest rate
* Money-market
* Savings
* Time deposit (Bond)

Transaction (checking / current)
Cards

* ATM
* Credit
* Debit
* Prepaid

Funds transfer

* Cheque
* Card
* Electronic
* Bill payment
* Instant payment
* Mobile
* Wire
* RTGS
* NS
* Direct debit
* ACH
* Giro
* SWIFT
* Correspondent account
* CLS
* CIPS
* SPFS
* BRICS PAY

Terms

* Asset
* allocation
* management
* Automated teller machine
* Bad debt
* Bank rate
* Bank regulation
* Bank secrecy
* Asset growth
* Capital asset
* Cash
* Climate finance
* Corporate finance
* Disinvestment
* Diversification (finance)
* Eco-investing
* Economic bubble
* Economic expansion
* Enterprise value
* Enterprise risk management
* Environmental finance
* ESG
* Ethical banking
* Financial
* analysis
* analyst
* asset
* economics
* engineering
* forecast
* plan
* planner
* services
* Fractional-reserve banking
* Full-reserve banking
* Fundamental analysis
* Growth investing
* Hedge (finance)
* Impact investing
* Investment advisory
* Investment management
* Islamic banking
* Loan
* Mathematical finance
* Mobile banking
* Money creation
* Pension fund
* Private banking
* Sustainability
* Sustainable finance
* Speculation
* Statistical finance
* Strategic financial management
* Stress test (financial)
* Structured finance
* Structured product
* Toxic asset

Related topics

* Asset pricing
* Bond (finance)
* Capital structure
* Corporate finance
* Cost of capital
* Equity (finance)
* Ethical banking
* Exchange-traded fund
* Financial
* law
* market
* participants
* regulation
* risk
* system
* History of banking
* List of banks
* Market risk
* Personal finance
* Public finance
* Security (finance)
* Shares
* Sustainable Development Goals
* Systematic risk
* Systemic risk
* Time value of money
* Too big to fail
* Too connected to fail
* Watered stock

* Category
* Commons
* Portal

* v
* t
* e

Financial regulation is a broad set of policies that apply to the financial sector in most jurisdictions, justified by two main features of finance: systemic risk, which implies that the failure of financial firms involves public interest considerations; and information asymmetry, which justifies curbs on freedom of contract in selected areas of financial services, particularly those that involve retail clients and/or principal–agent problems. An integral part of financial regulation is the supervision of designated financial firms and markets by specialized authorities such as securities commissions and bank supervisors.

In some jurisdictions, certain aspects of financial supervision are delegated to self-regulatory organizations. Financial regulation forms one of three legal categories which constitutes the content of financial law, the other two being market practices and case law.[1]

## History

[edit]

This section needs expansion. You can help by adding to it. (November 2023)

|

In the early modern period, the Dutch were the pioneers in financial regulation.[2] The first recorded ban (regulation) on short selling was enacted by the Dutch authorities as early as 1610.

## Aims of regulation

[edit]

The objectives of financial regulators are usually:[3]

* 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.
* reduce financial crime
* regulate foreign participation

## Structure of supervision

[edit]

Acts empower organizations, government or non-government, to monitor activities and enforce actions.[4] There are various setups and combinations in place for the financial regulatory structure around the globe.[5][6]

### Securities market regulation

[edit]

Main article: Securities commission

Exchange acts ensure that trading on the floor of exchanges is conducted in a proper manner. Most prominent the pricing process, execution and settlement of trades, direct and efficient trade monitoring.[7][8]

Financial regulators ensure that listed companies and market participants comply with various regulations under the trading acts. The trading acts demands that listed companies publish regular financial reports, ad hoc notifications or directors' dealings. Whereas market participants are required to publish major shareholder notifications. The objective of monitoring compliance by listed companies with their disclosure requirements is to ensure that investors have access to essential and adequate information for making an informed assessment of listed companies and their securities.[9][10][11][12]

Asset management supervision or investment acts ensures the frictionless operation of those vehicles.[13]

### Supervision of banks and financial services providers

[edit]

Main article: Bank regulation

Banking acts lay down rules for banks which they have to observe when they are being established and when they are carrying on their business. These rules are designed to prevent unwelcome developments that might disrupt the smooth functioning of the banking system. Thus ensuring a strong and efficient banking system.[14][15]

## Financial regulatory authorities

[edit]

Main article: List of financial regulatory authorities by jurisdiction

## See also

[edit]

* Bank regulation
* Finance
* Financial economics § Financial markets
* Financial ethics
* Financial regulation in India
* Financial repression
* Global financial system
* Group of Thirty
* Insurance law
* International Organization of Securities Commissions
* International Centre for Financial Regulation
* LabEx ReFi - European Laboratory on Financial Regulation
* Macroprudential regulation
* Microprudential regulation
* Regulatory capture
* Regulatory economics
* Securities commission
* Commodity market § Regulation of commodity markets
* Virtual currency law in the United States

## References

[edit]

1. ^ Joanna Benjamin 'Financial Law' Oxford University Press
2. ^ Clement, Piet; James, Harold; Van der Wee, Herman (eds.): Financial Innovation, Regulation and Crises in History. (Routledge, 2014. xiii + 176 pp. ISBN 9781848935044)
3. ^ UK FSA statutory objectives, 2016-04-20, archived from the original on 2017-07-07, retrieved 2012-08-21
4. ^ De Caria, Riccardo (2011-09-23), What is Financial Regulation Trying to Achieve?, Riccardo De Caria, SSRN 1994472
5. ^ Luxembourg CSSF structure and organisation
6. ^ German BAFin supervision organisation, archived from the original on 2012-08-04
7. ^ Suisse finma stock exchange supervision
8. ^ German BAFin stock exchange supervision, archived from the original on 2012-07-22
9. ^ Finland FSA supervion of listed companies, archived from the original on 2012-10-12, retrieved 2012-08-05
10. ^ Saudi Arabia market supervision, archived from the original on 2013-05-18, retrieved 2012-08-05
11. ^ Smith, J.; Johnson, P. (2023). "Navigating the regulatory landscape: Security requirements for financial institutions". Journal of Financial Compliance. 12 (3): 45–67.
12. ^ Borsa Italiana listed stock supervision[permanent dead link]
13. ^ US SEC Division of Investment Management
14. ^ Reserve Bank of India, Department of Banking Supervision
15. ^ Luxembourg CSSF Supervision of Banks, archived from the original on 2016-03-05, retrieved 2012-08-05

## Further reading

[edit]

* Labonte, Marc. (2017). Who Regulates Whom? An Overview of the U.S. Financial Regulatory Framework. Washington, D.C.: Congressional Research Service. Archived 2017-12-05 at the Wayback Machine
* Reinhart, Carmen; Rogoff, Rogoff (2009), This Time is Different: Eight Centuries of Financial Folly, Princeton U. Pr., ISBN 978-0-691-15264-6
* Simpson, D., Meeks, G., Klumpes, P., & Andrews, P. (2000). Some cost-benefit issues in financial regulation. London: Financial Services Authority.

## External links

[edit]

* Securities Lawyer's Deskbook from the University of Cincinnati College of Law
* Ana Carvajal, Jennifer Elliott: IMF Study Points to Gaps in Securities Market Regulation
* IOSCO: Objectives and Principles of Securities Regulation (PDF-Datei 67 Seiten)

* v
* t
* e

Financial markets

Types of markets|

* Primary market
* Secondary market
* Third market
* Fourth market

Types of stocks|

* Common stock
* Golden share
* Preferred stock
* Restricted stock
* Tracking stock

Share capital|

* Authorised capital
* Issued shares
* Shares outstanding
* Treasury stock

Participants|

* Broker
* Floor broker
* Inter-dealer broker
* Broker-dealer
* Market maker
* Trader
* Floor trader
* Proprietary trader
* Quantitative analyst
* Investor
* Hedger
* Speculator
* Arbitrager
* Scalper
* Regulator

Trading venues|

* Exchange
* List of major stock exchanges
* Over-the-counter (off-exchange)
* Alternative trading system (ATS)
* Multilateral trading facility (MTF)
* Electronic communication network (ECN)
* Direct market access (DMA)
* Straight-through processing (STP)
* Dark pool (private exchange)
* Crossing network
* Liquidity aggregator

Stock valuation|

* Alpha
* Arbitrage pricing theory (APT)

* Beta
* Buffett indicator (Cap-to-GDP)
* Book value (BV)
* Capital asset pricing model (CAPM)
* Capital market line (CML)
* Dividend discount model (DDM)
* Dividend yield
* Earnings yield
* EV/EBITDA
* Fed model
* Net asset value (NAV)
* Security characteristic line
* Security market line (SML)
* T-model

Trading theories
and strategies|

* Algorithmic trading
* Buy and hold
* Contrarian investing
* Dollar cost averaging
* Efficient-market hypothesis (EMH)
* Fundamental analysis
* Growth stock
* Market timing
* Modern portfolio theory (MPT)
* Momentum investing
* Mosaic theory
* Pairs trade
* Post-modern portfolio theory (PMPT)
* Random walk hypothesis (RMH)
* Sector rotation
* Style investing
* Swing trading
* Technical analysis
* Trend following
* Value averaging
* Value investing

Related terms|

* Bid–ask spread
* Block trade
* Cross listing
* Dividend
* Dual-listed company
* DuPont analysis
* Efficient frontier
* Financial law
* Flight-to-quality
* Government bond
* Greenspan put
* Haircut
* Initial public offering (IPO)
* Long
* Mandatory offer
* Margin
* Market anomaly
* Market capitalization
* Market depth
* Market manipulation
* Market trend
* Mean reversion
* Momentum
* Open outcry
* Order book
* Position
* Public float
* Public offering
* Rally
* Returns-based style analysis
* Reverse stock split
* Share repurchase
* Short selling
* Short squeeze
* Slippage
* Speculation
* Squeeze-out
* Stock dilution
* Stock exchange
* Stock market index
* Stock split
* Stock swap
* Trade
* Tender offer
* Uptick rule
* Volatility
* Voting interest
* Yield

Authority control databases: National |

* Germany

|

*[v]: View this template
*[t]: Discuss this template
*[e]: Edit this template