Recently, I met with several accomplished compliance professionals for lunch. There was considerable discussion about the continuing growth of the regulatory frameworks, the bureaucracies to maintain them, and economic burden on financial institutions.

One individual expressed the importance of financial protection of the consumer, while recognizing that such protection causes incremental compliance requirements; another individual agreed that such protection was needed, but worried that the costs to provide that protection would ultimately be borne by the consumer through increased pricing.

In a way, these views reflect an ethical dilemma, and I would like to explore this seeming conundrum and offer a resolution.

IN THIS ARTICLE

An Unfettered Market

Pricing

Framework

Regulations

Protecting the Consumer

"Remember that credit is money."

Ethical Dilemma

Discussion Forum