Banks, Insurers, Brokers, Asset managers are all in the business of selling promises. Money today for an outcome tomorrow.
Financial Regulation is all about making sure that these financial firms keep their promises. The bigger the promise the more the regulation.
It’s actually a good way to “test” if you are performing a regulated activity. Consider:
- Promise this food won’t kill you.
- Promise this building won’t fall down tomorrow.
- Promise to pay you if you get into a car accident.
- Promise to keep your money safe.
So next time you think that the compliance requirements are too high, consider the size of the promise you are making to customers.
See how CoVi Analytics can help you keep your promises.