Under the Microscope: 3 Most-Regulated Industries
While some sectors seem to have considerable leeway in how they’re allowed to operate and communicate with customers, other industries must navigate through a series of checks and balances to ensure they adhere to strict compliance measures – usually with hefty fines attached if they step out of line.
Here’s a rundown of three industries that are required to jump through a plethora of legal flaming-hoops to maintain a good relationship with their governing bodies:
When it comes to the most heavily-regulated sector, you’d struggle to find one more scrutinised than banking and financial services. Of course, that’s not without good reason. Dealing with people’s money can have far-reaching implications for their financial well-being and retirement (not to mention the recent global economic crises, widely thought to have been perpetuated by nefarious banking practices).
Fines for compliance breaches have been vast, with a 2016 report by the New City Agenda think-tank finding that banks had shelled out £53bn in fines over the past 15 years. The PPI backlash alone cost over £37bn, four times more than the bill for the London Olympics. From new start-ups like PropertyMoose to established firms like MoneyPlus, everyone is held to the same standards.
It’s perhaps no surprise then that the industry is now under so much scrutiny.
Covering areas such as sports betting, bingo and casino, this sector is subject to strict safeguarding rules to ensure players are not waging beyond their means. It’s one of the few industries where operators are expected to police the activity of their customer base, or face enormous fines.
Some critics have questioned why fast/junk food or alcohol providers aren’t help responsible for chronic conditions that can develop in those who frequently purchase their products, which cost the NHS billions to treat every year. Others counter that a ‘sin tax’ increasingly imposed for both should dissuade people from over-consumption.
Nonetheless, the gaming industry has a care of duty to their customers. One of the main restrictions is in how they portray the industry. For example, it can never promise a lavish lifestyle or as the “solution” to people’s financial problems.
Online foreign exchange (Forex) trading is the world’s fastest-growing market, with a daily volume of $5.5tn. Retail trading (done by individuals rather than companies) accounts for around a quarter of this.
The value of a currency has a dramatic impact on the overall economy of a country, as well as the global financial landscape. There are significant political implications for forex trading platforms, along with the care of duty for traders.
It’s fair to say that the industry has a questionable reputation, since many people wary about the legitimacy of brokerage companies. Thanks to strict compliance guidelines, unscrupulous operators have been forced out of trading and new names like Tradefred and Capital Unit have emerged. Online forex trading is increasingly prevalent on social media and financial websites, so compliance is highly scrutinised by local and international regulatory bodies.
With potentially large sums of money involved, this risk is significantly heightened – so enhanced regulation is necessary.
Is It Necessary?
The reality is regulation is here for a reason. Without it, people could be putting themselves, their business or (in the most extreme case) the global economy at risk.
There are still plenty of ways companies can advertise. All they need is the right tools and a bit of expert knowhow to point them in the right direction. As experts in marketing for highly regulated industries, ActiveWin can help navigate your way to safety.