Regulatory Compliance in Financial Markets

Understanding Regulatory Compliance:

Regulatory compliance involves adhering to laws, regulations, and standards set by governing bodies. Compliance ensures fair, transparent, and ethical practices in financial markets.

Key Regulatory Bodies and Their Roles:

• Securities and Exchange Commission (SEC): Regulates securities markets in the U.S.
• Financial Conduct Authority (FCA): Oversees financial markets in the U.K.
• Commodity Futures Trading Commission (CFTC): Regulates futures and options markets in the U.S.

Compliance Requirements for Investors and Firms:

• Know Your Customer (KYC): Verify the identity of clients to prevent fraud and money laundering.
• Anti-Money Laundering (AML): Implement measures to detect and prevent money laundering activities.
• Reporting Obligations: Disclose financial information and transactions as required by regulators.