Restrictions kill businesses, allowing them to fail slowly, as clients naturally drift. FNZ had a restriction imposed on them to stop taking on new clients. But most financial services’ businesses lose 5% to 10% of their clients each year. So the restriction is an order to shrink. Every business owner experiencing rapid growth needs to calculate their drop off rate and estimate how long they would survive this sort of restriction from the regulator. Have you done that?
It is normally implemented while all parties await an independent report on procedures and systems. It is the death zone in growing a business. Getting to the top in a heavily regulated environment has never been harder. Regulation kills competition and raises barriers to entry. As many have said before, any business would be foolish to object to that outcome.