It's not only this. An environment where the only investment policy is caveat emptor is also an environment that will encourage more scammy investment opportuni

It's not only this. An environment where the only investment policy is caveat emptor is also an environment that will encourage more scammy investment opportunities. It is also in the state/community interest to make sure investments represent real growth opportunities and not just lining some huckster's pockets. You don't want the entire market itself to end up a market for lemons.