A financial regulatorA financial regulator is an institution that supervises and... More is an institution that supervises and controls a financial system. Their objective is to guarantee fair and efficient and financial stability.
Many financial regulators are responsible for certain markets within a country, all markets in a country or even for markets consisting of multiple countries.
The (FCA)*, for instance, is one of the financial regulation bodies of the , while the is the financial regulation body of .
* The FCA replaces the previous regulation body – the FSA. This was abolished in 2013, when the Financial Services Act 2012 came into force, changing the framework for regulation of the financial sector.
The main responsibilities of financial regulators are to enforce applicable laws, try to prevent cases of marketWhat are value stocks? A value company is a company that app... More manipulation, ensure the competence of financial service providers, execute regular inspections, protect and clients, and investigate and prosecute misconduct, such as insider trading.
and that are regulated are more secure to trade with, as they are obliged to meet certain standards and requirements.
Financial regulators are responsible for ensuring that a brokerWhat is an online broker? In online trading, a broker is a ... More has segregated accountsWhat is a segregated account in trading? In a segregated acc... More. This means that the of a traderWhat is a trader? A trader is a person who buys and sells... More is safe even if the broker would get into financial troubles.
