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Two years ago I left IT and started my own wealth management company...and now I'm back. I can tell you, the regulations on the retail side of finance are nons
by IanDrake 6y ago
Two years ago I left IT and started my own wealth management company...and now I'm back. I can tell you, the regulations on the retail side of finance are nonsense and help no one.
Like gun control, bad actors don't care about your laws. The only people who are regulated are the honest ones, and the amount of regulation can put them out of business, or even dissuade them from being has honest as they'd like.
If RH lied about how they're compensated, then they are certainly guilty, but the harm to consumers is just the tip of the iceberg. Consider how much RH has harmed all the honest financial advisors who had to compete with a "free" service that hides their cost to consumers.
If I had lied to one client about how I was compensated, bye bye license.
- renewiltord 6y agoThat's usually how regulation works. Regulation is a moat. You want it to be really really harsh and then be one of the first few on the inside. Because by adding a flat startup cost to an industry you make it impenetrable to upstarts. Then you can use a venture-funded company to get inside the moat. But once there are a few inside, the next person investigating will realize that if they also enter the moat everyone will be commodified. They will lose their money too. They'll have to compete and like Thiel says in Zero to One, you don't want competition. Regulation is good for protecting your business and for helping big companies survive upstart disruptors. What happened to you is by design.