Why a regulatory system is necessary?

A regulatory system is essential to ensure the safety, fairness, and integrity of various sectors, including finance, healthcare, and the environment. It establishes rules and standards that protect consumers, promote competition, and mitigate risks associated with market failures. By providing oversight, a regulatory framework helps maintain public trust and accountability, fostering a stable and sustainable economy. Additionally, it addresses issues of equity and ethical practices, ensuring that all stakeholders are treated fairly.