Regulation

As a German-based company, M|E|W Consul is subject to local rules and regulations.

Tighter regulation surrounding markets/products/investments/shadow banks/etc. is consistent with the business models of M|E|W Consul and Project KLF, and is explicitly welcomed to that effect.

The same applies to the regulation of the OTC market, or the shift towards central counterparties (CCPs) for the settlement of derivative transactions and the associated reduction in counterparty risk.

A lack of regulation of the international financial sector, however, shouldn’t deter investors from setting higher individual standards.

But even the best form of regulation cannot provide total security against financial market turmoil. Regulation can only account for known risks, and only as far as is economically practical. Unknown risks and latent uncertainties cannot be regulated. For this reason, regulation should always be supplemented by an additional insurance component at individual company level when used as a risk management tool of any kind, i.e. in the case of companies: KLF back-up insurance.

 

"Nunquam non paratus" - never unprepared!

 

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