Can you depend on a financial regulator to save you from making a bad investment?

The answer is a resounding no and not just for the obvious reason that a regulator almost never steps in with a get out of jail refund cheque when your investment turns out to be a wipeout.

In many ways the financial regulators are usually two or three steps behind what is happening in the real world and when they do get around to regulating a troublesome area, the intervention can throw up other problems by dissuading innovation.

It is far better to ensure that you thoroughly research all investment opportunities yourself because that is part and parcel of the investment process and is not something you can afford to delegate to a friend and especially not a regulator.

The most you can really hope for is that financial regulators help to ensure a transparent and well-informed market and that they help to…

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