You might be missing the point the parent is making. The point is not to address the problem, but to appease the regulator by having a tool that makes it reason

You might be missing the point the parent is making. The point is not to address the problem, but to appease the regulator by having a tool that makes it reasonable to argue that you are compliant with regulations. FWIW, SEC did issue some fines, one could argue it is a reaction to it to some extent.