Which of the following is a consequence of regulatory non-compliance in the financial sector?

In the context of the financial sector, regulatory non-compliance can lead to severe consequences, one of which is the potential loss of the license to operate. Regulatory bodies establish rules and standards to ensure fair practices, stability, and trust within the financial markets. When a financial institution fails to comply with these regulations, it risks being deemed unfit to conduct business.

Losing the license to operate means that the institution can no longer provide its services legally, which directly affects its ability to generate revenue, maintain customer relationships, and uphold its market presence. This consequence emphasizes the importance of adhering to regulatory standards as they are designed to protect both consumers and the integrity of the financial system. In essence, the loss of a license is one of the most impactful, immediate, and detrimental results of failing to meet regulatory requirements.