Financial regulatory agencies are government organizations responsible for overseeing and enforcing laws related to financial markets and institutions. Their primary goal is to ensure the stability and integrity of the financial system, protect consumers, and prevent fraud. Examples of these agencies include the Securities and Exchange Commission (SEC) and the Federal Reserve.
These agencies create rules and regulations that financial institutions must follow, conduct regular inspections, and monitor market activities. By doing so, they help maintain public confidence in the financial system and promote fair practices among businesses and investors.