Financial firms such as Banks, Insurance companies, wealth managements services are classed as Financial Markets. These companies are some of the most highly regulated sectors in the UK. The two main objectives of the regulations are:
Regulation in financial markets is essential as it provides consumers with assurance that their money is safe and removes the fear of losing the money by the firms due to the regulations. The regulations not only help consumers but also businesses and the government to maintain a stable economy.
The regulations are also required to allow the financial firms to make a profit. Financial firms are essential to the economy as they allow consumers to grow their money through investments, store money and also allow consumers to borrow money.
