Like parenting, regulation should be strict, evenly enforced and calibrated so that it does not kill individual creativity and growth. Too often regulatory focus falls exclusively on strictness, leaving enforcement and economic considerations behind.
Until a little over 50 years ago investors with no financial training were obliged to hire a professional portfolio manager, either directly or through some commingled vehicle. This was because they needed someone who could, at least in principle, suggest the right asset allocation, select securities and diversify their portfolios.