Re:The Missing Stakeholders
by gumby on Sunday February 07, 2021 @02:52PM
(#26057649)
> For example the GDPR takes the best of intentions around citizen privacy and ends up causing unintended harm by layering ambiguous and extensive responsibilities and liabilities on small businesses and individuals with web presence.
This happens in spades in the finance industry, which has addressed it by outsourcing it: small companies start up that do nothing but compliance for regulation X or Y. You can see this, for example, in US retirement funds: if you put a dollar into your 401(k) various people touch it before it is actually invested, certifying that the 401(k) fits this or that qualification restriction, certifying various arms length rules etc, each taking a small fraction of a percent as a fee. In then end only perhaps 97* cents of asset is purchased with your dollar.
In case it is not clear: I am not advocating this system! Just saying that the market can adapt to it, and favoring big incumbents is not the only way/consequence. Each of these little entities of course becomes a protected incumbent themselves.
* I don't remember the precise amount but it was more than a percent and I think it ended up added up to three or four. But it was many many years when I looked at this, and it was when I was evaluating a company's tech stack for an investor, so my focus wasn't on these details. But it was fascinating how the market had adapted.
This happens in spades in the finance industry, which has addressed it by outsourcing it: small companies start up that do nothing but compliance for regulation X or Y. You can see this, for example, in US retirement funds: if you put a dollar into your 401(k) various people touch it before it is actually invested, certifying that the 401(k) fits this or that qualification restriction, certifying various arms length rules etc, each taking a small fraction of a percent as a fee. In then end only perhaps 97* cents of asset is purchased with your dollar.
In case it is not clear: I am not advocating this system! Just saying that the market can adapt to it, and favoring big incumbents is not the only way/consequence. Each of these little entities of course becomes a protected incumbent themselves.
* I don't remember the precise amount but it was more than a percent and I think it ended up added up to three or four. But it was many many years when I looked at this, and it was when I was evaluating a company's tech stack for an investor, so my focus wasn't on these details. But it was fascinating how the market had adapted.