Scams, mis-selling, and wrongdoing, which are pervasive in the financial markets, hurt retail investors the most, destroying large chunks of their hard-earned savings. Every such episode sees regulators tighten the rules without reducing the number of offences. In fact, a spate of recent broker defaults or shenanigans by mutual funds are reminiscent of the 1990s and have blown off the hard-won improvements in marketplace safety.
One view is to accept this as an inevitable fact, saying: “What more can regulators do, beyond learning from each case and plugging loopholes?” Or that “there will be crooks everywhere, you can’t stop them; it
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