How Are Global Investment Services Regulated?

Many new investors are surprised to learn that there is not a lot cooperative and organized regulation concerning global investment services. While there are organizations that regulate certain aspects of global investment, the regulations are not uniform and vary from country to country. In fact, many countries do not allow any type of foreign investment at all and some countries that allow foreign investments, place very heavy restrictions and limits.

Current Global Investment Regulators

While international banking and finance laws vary considerably, there are a few organizations that have been established to help facilitate trade and investment throughout the world.  Organizations like the International Monetary Fund and the World Bank have been established to allow developed nations to invest in developing, and third world countries. These organizations allow for development of funds for loans and other types of securities. In most cases, loans to developing countries are charged interest, or secured with rights to certain natural resources.

Many Countries and Many Laws

Many countries have their own laws and regulations regarding foreign investment. For example, many countries have laws and regulations regarding the reporting of earnings from foreign investments, and how they are applied to taxes or duties in the home country.

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