Financial regulation is a set of laws, regulations, and administrative mechanisms that seek to ensure the sound management of the financial system. The financial system includes banks and nonbank deposit-taking firms and their affiliates, money market funds, insurance companies (such as life insurance companies), and broker-dealers that engage in buying and selling securities for their own account as well as for others. Financial regulation seeks to ensure practices are fair to all investors, ensure that market participants have access to honest information about securities prices, and manage systemic risk through supervision or regulation.

conclusioon :- 

Financial regulation is a public policy mechanism designed to regulate risks, allocate risk and market failure, and strengthen fairness in financial institutions.

The main task of regulation is to protect investors from harm. Regulations govern the activities of financial institutions and are created to protect consumers’ investments.