Regulatory Frameworks in Finance

Regulatory frameworks in finance are rules and guidelines established by governments and authorities to ensure stability, transparency, and fairness in financial markets. They protect consumers from fraud, ensure accurate reporting by companies, and mitigate risks that could lead to economic crises. Examples include regulations set by the Securities and Exchange Commission (SEC) in the U.S., which oversees stock markets, and the Basel Accords, which set international banking standards. By enforcing these regulations, authorities aim to foster trust in the financial system, promote fair competition, and support economic growth.