Tribunals handing out demerit points could protect investors
Incompetence is as dangerous as fraud, and could be handled in same way as bad driving
In 1770, the British executed Admiral John Byng for losing a battle against the French.
Voltaire said about the case: "It is wise to kill an admiral from time to time to encourage the others." The British won the next battle.
Financial market regulators haven't gone quite so far as to use capital punishment as an enforcement tool, although it would undoubtedly be as effective.
Persistent bad behaviour in any walk of life quickly leads to deeper and more corrosive corruption. Regulators exist to ensure good conduct, which they can only do if they discipline offenders using the full legal arsenal at their disposal, be it courts, tribunals or their own powers.
Which is why anybody who breaches the key rule that is universally accepted in modern markets - that insider dealing is not acceptable - must always be pursued to the fullest extent that regulations allow.
Demerit points for different incompetencies ... would lead up to a market ban
Making a lot of money by dealing on the back of non-public information acquired by being in a privileged position is just too easy. Insider dealing goes against the principle that all investors are treated fairly and equally.