Instruments of Financial Regulation in Iran & U.K

The inherent complexities of financial market contracts, including those made within the money and capital markets, and the effect of the financial market on the totality of the economic system of a country by providing financial resources motivate governments to use various instruments to secure finances and uphold public interests in these markets. The necessity to ensure the private interests of investors while minimizing and managing risks and the dual nature of regulation, which restricts market agents on one hand and constrains governmental intervention on the other, creates a vast continuum of regulatory instruments which are used in more or less all countries around the world in some manner. Regulation has transitioned through market crashes, government failures and the shortcomings of private law in attaining public and private interests, and has risen to the status of a government theory; it provides instruments and devices through which governments may select and deploy regulatory policies. In the present paper, Iran and the United Kingdom have been selected with respect to their differing points of departure on the regulation of financial markets and comparisons have been made regarding the strategies, methods, sanctions, resources and bodies which systematically facilitate one or many governmental policies which make up the regulatory mechanisms governing the financial markets in both countries.