CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 87.41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Scan to Download iOS&Android APP

What is financial regulation?

Financial regulation
Share this article

It's a form of regulation or supervision under which financial institutions, such as banks, are subjected to certain requirements and restrictions. Financial regulation aims to maintain the integrity and stability of the financial system, secure adequate consumer protection, reduce financial crime and maintain market confidence.

Where have you heard about financial regulation?

Financial regulation has been big in the news since the 2007-10 financial crisis; many commentators have argued that it was insufficient regulation that contributed to the near-meltdown of the financial system a decade ago. Under President Donald Trump, the focus in the US is now moving towards less regulation again.

What you need to know about financial regulation.

Governments have a wide range of agencies in place that regulate and oversee financial companies and markets. In the US, these include the Federal Reserve board (which supervises the banking system); the Commodity Futures Trading Commission (which regulates commodity futures and options markets); and the Securities and Exchange Commission, which enforces federal securities laws and regulates most of the securities industry.

In Britain the Financial Conduct Authority regulates financial firms. It operates independently of the UK government, and is financed by charging fees to members of the financial services industry.

New to trading? Learn to trade with Capital.com

Related articles

View all articles

Still looking for a broker you can trust?

Join the 475.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading