Question

In view of the increasing complexities in the different financial products and services review whether conduct of business regulation should widen to specifically cover incorporated institutions as well as the smaller consumers.

Answer 1

Ans: In today's era with the advancement in technology consumer data which is held by the financial institution is vulnerable and also the complexities in the financial products have increased a lot over the past few years because lots of financial products are injected into the market with the help of technology. And due to this risk and accountability on the government and these financial institutions have also increased to safeguard the consumer's data and their money.

Yes, the government and these financial institutions need to stringent their laws and norms to conduct business regulations and also the government needs to widen their business regulation over incorporated institutions as well as the small consumers because of the increased complexities in the financial products due to advancement in technologies, rise in consumers, globalization etc to protect customers rights and money.

Advantages of widening business regulation and making stringent laws will be:

1 customer's rights will be protected which will ensure the trust in the institution and the government.

2 Fewer chances of fraudulent activities from consumers as well as the institutions which will help the institution as a deterrent against the crisis.

3 It will help the economy and the state from major financial crises.