Does Venture Capital Pose a Systemic Risk to the Financial System?
Evidently the $200 billion venture capital industry is a source of systemic risk to the financial system. As part of the financial system regulatory redesign, venture capital firms will be required to register as investment advisers with the SEC. This will impose a significantly higher compliance burden on VCs as well as requiring VCs to comply with anti-money laundering regulations imposed on financial institutions post 9-11. I wonder how long it will be before an enterprising VC funds a SaaS/Business Process Outsourcing company that will provide regulatory compliance services for small to medium sized VC firms?
Related Questions
- What were the elements of the systemic risk the financial system would have experienced if AIG had been allowed to fail? What was the estimated magnitude of such risk?
- What does institutional investors failure to manage risk say about the state of the global financial system?
- Does Venture Capital Pose a Systemic Risk to the Financial System?
