Financial Law Basics
Financial Law Basics
Greg Heller (Financial Consultant) gives expert video advice on: Why are there so many different types of financial companies?; How can I avoid being taken advantage of by financial services companies? and more...
What is 'financial law'?
Financial law is really the actual coming together of the institutions that provide the products or services, whether they be banks or whether they be insurance companies or the brokerage houses themselves.
Why are there so many different types of financial companies?
There's so many different types of financial companies because, in the very beginning, the government was concerned about there being too many large companies. And the concern really was if there's too many large companies that there might be a lack of disclosure and some other issues that wouldn't be in the benefit of the consumer themselves.
What are the purposes of financial laws?
The purposes of financial laws really are the fact that the regulatory bodies want to make sure that everybody out there has the most appropriate information that's available to them today. And that way it allows everybody to make sure that they can make the best decisions possible for themselves.
Why are so many companies offering all types of financial services?
These companies are really starting to offer, or the majority of companies are trying to offer, all the products and services under one roof, or one umbrella, because of the economics. Each one of these different products that are offered by the companies are revenue sources. So banks can offer insurance products, or if insurance companies can offer brokerage products, it's to, again, have a place where an individual can come into and try to provide a house where all services can be rendered under one roof.
Does it matter where I do my banking or buy my insurance?
I think it matters quite a bit where you do your banking and where you buy your insurance. In banks right now, I think most people have seen that they have these desks that are associated with individuals that are providing services. And these individuals are part of the bank; they may be leased out or rented out to financial services companies. So it's very important that the consumer is very much aware of the individuals that are dealing with products or selling.
What is 'financial fraud'?
Fraud is a misrepresentation of the truth, and unfortunately the business that we are in, the financial services industry, are really in the financial areas that we have seen fraud. There has been quite a bit of fraud and we are seeing that as we go forward, that we are seeing more and more regulatory bodies trying to control what has been written and said by individuals that are in the financial services industry.