Yes and no. You are right it limits positive mobility. But there are really two kinds of people here. One kind expects to be handed success to them without them

Yes and no. You are right it limits positive mobility. But there are really two kinds of people here. One kind expects to be handed success to them without them doing any work. It is correct to protect these people as much as possible. They'll probably still end up losing their money, though. The second group of people know that they need to work, learn and plan to succeed. These are the people that may be slowed down by the regulation. But they are able to overcome any given set of static rules anyways, so it's only a slowdown at best. In the end any kind of rules are not just there to protect the stupid, but also to establish the people currently at the top. It's selfish, but when you end up at the top, would you do it otherwise? I probably wouldn't.