At the very end of chapter 9 the core reading talks of the benefits of restrictions on investment funds/managers:
The purpose of such restrictions can be seen as threefold:
1. to protect the ultimate beneficiaries from gross incompetence or mismanagement by fund managers
2. to encourage confidence in investment schemes and the benefits they secure
3. to promote the accumulation of investible funds.
I'm not sure what is meant by point 3.
Is it saying by having restrictions it encourages more investment funds that are worth investing in.
or is it saying by having investment restrictions it encourages people to invest in these funds (although this seems to be what point 2 is about.)
or is it trying to say something different?
