Regulatory Framework Abroad
A regulatory mechanism, in terms of finance, is the mechanism to regulate the working of the financial system. Its function is to ensure the compliances in terms of regulations of the Central Bank, commercial banks, financial institutions, insurance companies, non-banking financial institutions, exchange houses and official credit institutions. It is also entitled for the supervision of the compliances of these regulations. It inspects and supervises issuers registered in the Public Stock Registry. It supervises the compliances with the dispositions applicable to the Pension Savings System and Public Pension System. More particularly it supervises the administrative functions for Pension Funds, the Public Employee Pension Institute and the Social Security's Disability, Old Age and Death Program.
A regulatory body, in the context of financial markets, is a regulator for ensuring that the financial markets are fair, efficient and transparent. It strives to reduce the systemic risk to protect the investor.
The regulator should aim for:
Examples of the important financial regulators regulating the money and capital markets are: