About Lesson
The main objectives of market regulations are:
a. to control fraud by, or deception of market participants;
b. to set minimum standards of competence for agents and define and enforce minimum standards of practice;
c. promote fairness;
d. set standards for financial reporting, which is fair to both the users and providers;
e. set minimum capital requirements for financial firms, this reduces the cost or disruptions due to failure;
f. to ensure that the insurance and pension funds have enough and sufficient capital to honor their long-term commitments.
To sum up, we can say that the main objective of market regulation is to build the investor’s confidence.