8 Agencies That Regulate World Securities Markets

It is essential to make sure that the world securities markets are well regulated at all times. When there are regulations, it is possible to make sure that the securities market is in a position to contribute towards the betterment of all the people who engage with it. ICMAgroup says on top of that, it is also possible to make sure that the securities market is in a position to help people with discovering solutions to the potentially fraudulent activities that they have to face when working with transactions in the securities market.

Here is a list of some prominent agencies that are responsible for regulating the world securities market as of now. It is essential to have a good understanding about these agencies and the important role played by them in regulating the market accordingly.

Federal Deposit Insurance Corporation

The Federal Deposit Insurance Corporation, which is also known as FDIC was created back in the year 1933. It is one of the most prominent agencies that is regulating the world securities market as of now. The Federal Deposit Insurance Corporation is offering insurance on the deposits, so that people can understand that they are receiving a guarantee on the money that they deposit at banks. On the other hand, they go ahead and provide a great amount to ensure the protection of the depositors as well.

The Federal Deposit Insurance Corporation is regulating the CDs, savings accounts, checking accounts and money market accounts as well. On the other hand, the coverage offered by the Federal Deposit Insurance Corporation is extended up to individual retirement account as well. However, this security would only be available for the accounts that are previously listed.

It is essential to understand the products that are not covered under Federal Deposit Insurance Corporation as well. They include annuities, mutual funds, and life insurance policies.

Office of Thrift Supervision

Office of Thrift Supervision, which is also known as OTS, was established back in the year 1989. This is managed by the Department of Treasury. The Office of Thrift Supervision is entirely funded by the institutions that are regulated by it. it is quite similar to OCC. However, the Office of Thrift Supervision is regulating the federal savings associations. In other words, it is offering protection against loans and savings. Back in the year 2011, the Office of Thrift Supervision went ahead and merged along with few other agencies.

Commodity Futures Trading Commission

Commodity Futures Trading Commission, which is also known as CFTC was established back in the year 1974. This was established in the form of an independent authority in order to regulate the options and commodity futures, along with the other derivative markets as well. This is offering efficient and competitive market trading at all times. On the other hand, it is working with the objective of extending protection to the participants from the negative effects that market manipulation can create.

Financial Industry Regulatory Authority

The Financial Industry Regulatory Authority was established back in the year 2007. This is the successor of the National Association of Securities Dealers. The main objective of Financial Industry Regulatory Authority is to oversee all the firms that are currently engaged in the securities business under the public domain. On top of that, Financial Industry Regulatory Authority is responsible for offering training to the financial services professionals as well. This would offer much-needed assistance for the testing and licensing agents. On top of that, it is overseeing the arbitration and mediation processes against the disputes that take place in between the brokers and customers.

State Bank Regulators

The State Bank Regulators are functioning in a similar way to OCC. However, they are functioning more at a state level. Hence, their key focus is on the state-chartered banks. They are capable of discovering the work of the federal reserve as well.

State Insurance Regulators

The State Insurance Regulators are responsible for managing the insurance products. In other words, they monitor how the entities that operate in the insurance industry are operating. The main objective of the State Insurance Regulators is to provide protection to the customers against the negative consequences that can take place because of the insurance products and issues related to them. Customers of insurance products can directly seek the assistance of State Insurance Regulators.

State Securities Regulators

The State Securities Regulators are working on ensuring the proper regulation of the securities business at a state level. For example, they are capable of offering registrations for the investment advisors, who don’t need to register along with SEC. Moreover, State Securities Regulators is capable of enforcing legal actions against the advisors who cause fraudulent activities as well.

Securities and Exchange Commission

Securities and Exchange Commission, which is commonly known as SEC is currently acting as the independent US Government agency for managing the securities and exchange act. This is one of the leading regulators that you will be able to see for the securities industry. On the other hand, they are capable of offering coverage outside the countries stock exchange as well. On top of that, the Securities and Exchange Commission is offering protection to the electronic exchanges as well as the other electronic securities markets that are operated out there in the world.

Final words

As you can see, there are different agencies, which are responsible for regulating the securities market. Along with proper regulation, they are capable of delivering protection to the people who take part in the industries that they govern as well. This is where they focus on the areas where coverage would often overlap, but there is a possibility for fraudulent activities to arise. Along with that, they are capable of ensuring that no such fraudulent activities would arise. If you are looking forward to going ahead with the securities market, you should have a strong understanding about these regulators.