Regulation of The Capital Market: Types of Regulations - SS2 Accounting Lesson Note
Regulations can be broadly classified into three types:
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Economic Regulations: These are regulations that aim to promote fair competition and protect consumers in markets. Examples include antitrust laws that prevent monopolies, regulations that govern pricing and quality standards for products and services, and rules that prevent fraud and unfair practices in financial markets.
Social Regulations: These are regulations that are designed to protect public health, safety, and the environment. Examples include regulations that govern workplace safety, food and drug safety, air and water pollution, and product safety.
Administrative Regulations: These are regulations that are designed to ensure that government agencies and departments function effectively and transparently. Examples include rules that govern public procurement processes, financial reporting and auditing requirements for public entities, and regulations that govern the conduct of elected officials and civil servants.