In most cases when the government begins to regulate particular types of businesses, there are several changes that come into place. Big companies often recruit compliance officers as well as establish departments that are entirely dedicated to avoiding any violations. This is because they understand the consequences of being caught on the wrong side of the law. There are several companies that have been in such situations and came almost to a halt. Read more about Jeff Yastine at investmentu.com to know more.
The Impact of Regulation
Regulations can often have both negative and positive effects on a business. Nonetheless, it is important to be cognizant of the fact that such regulations always translate into more expanse for a business. Consequently, the share prices fall and the investor confidence is eroded. In extreme cases, the values of stocks start to diminish way before the rules start operating. It is always a challenge for business owners to deal with the issue of regulation. This is because the more they comply, the more their expenses will increase. As a result, even their profits are negatively affected.
It is estimated that every year major world financial institutions spend up to $65 billion in a bid to comply with various business regulations. Besides, this amount is projected to increase up to $118 billion in the next two years. Most European Banks dedicate over $1 billion annually just to ensure that they comply with all the regulations.
A major theme I expect to emerge this year are competitors pairing off to better compete against Amazon, including some of the following companies…#Mergers #ACQUISITIONS #stocks #StockMarket #investing #BanyanHill $amzn $ebay $erj $kr $gww https://t.co/RFc7T2xudP
— Jeff Yastine (@Jeff_Y_Guru) January 2, 2018
Businesses can take advantage of regulation costs, thanks to “Regtech” technology. Regtech is a new regulatory technology which uses sophisticated computer software for the purposes of reducing costs. It utilizes artificial intelligence as well as blockchain technology. Business organizations can look for companies providing such services if they want to prevent regulatory costs from rising.
Regtech currently has over 100 small companies which most people are not even aware of. They include names such as; Taxometry, OnRule, ComplyAdvantage among others. Most of these small companies have not yet gone public. Regtech firms apparently work closely with insurance companies and banks.
Jeff Yastine joined Banyan Publishing as an Editorial Director in 2015. He has over 20 years’ experience in stock market investment as well as Financial Journalism. He is also the current editor of Total Wealth Insider, one of the most inspiring financial Magazines. With all his experience and insights in business matters, Yastine offers the best investment advice to his readers throughout the country and around the world.
For more updates, visit:https://medium.com/@jeffyastine