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Financial law is that area of the law which regulates the provision of financial services. Its goals, in general, are to support transparency in the provision of these services, and to instil confidence in prospective purchasers of these services that the transaction will be conducted on a fair basis. Since the world of finance can be extremely complex, and many financial services involved paying sums of money upfront in the expectation of receiving greater sums of money in future, it is clear that, without a firm foundation of law to keep potential malefactors in check, purchasers of financial services would be at high risk of exploitation. This risk might well deter them from making use of financial services at all, causing them instead to hoard any surplus savings at home. Ultimately, this practice would have a damaging effect on the economy as a whole, because the savings would be idle rather than being used for productive purposes, as they would be if placed in the care of a financial institution.
Violations of financial law can result in extremely complex litigation. Some have persistently argued that many financial complaints, such as those involving fraud, are too complex for juries to understand and that instead the cases should be decided only by a judge so that the buyers can get fair claims and judgement.
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