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Forgive my ignorance, but he talks about "necessary capital", and fails to explain why and what it is for. Is this something the regulators demand in order to p
by alan_cx 13y ago
Forgive my ignorance, but he talks about "necessary capital", and fails to explain why and what it is for. Is this something the regulators demand in order to protect his customers? Isn't that desirable?
Further, if he has put $1m in to the project, should he not have checked that laws and regulation first?
Perhaps the writer assumes a lot of knowledge on the part of the reader.
- McGlockenshire 13y ago> should he not have checked that laws and regulation first? The regulations came into existence after his project did. After the regulations went into effect, he was unable to get his project certified under the regulations.
- 7Figures2Commas 13y agoThis is called regulatory risk. This story seems like a good example of why anyone starting a business in an industry that is already highly-regulated, such as finance, must assume that future regulations could increase the cost of doing business, or threaten the viability of the business outright.