What is the purpose of conduct risk regulation in financial regulation?

Economics Financial Regulation Questions



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What is the purpose of conduct risk regulation in financial regulation?

The purpose of conduct risk regulation in financial regulation is to protect consumers and ensure fair and ethical behavior in the financial industry. It aims to prevent misconduct, such as fraud, mis-selling, market manipulation, and other unethical practices that could harm consumers or undermine the stability of the financial system. Conduct risk regulation sets standards and guidelines for financial institutions to follow, promotes transparency and accountability, and helps maintain trust and confidence in the financial sector.