One problem of a more principles-based system that was pointed out in an SEC study is that they:

Question

Quizplus · Accepted Answer

The SEC study pointed out that a more principles-based system may present enforcement problems, which suggests that it may not be as effective for ensuring compliance as a rules-based system. While principles-based systems do not rely on bright-line tests, the study did not suggest that this was a particular issue with such systems. Therefore, options A and C can be ruled out as incorrect choices. Since option B accurately reflects the finding of the SEC study, it is the best answer. Option D is incorrect because not all of the choices listed are accurate.

One Problem of a More Principles-Based System That Was Pointed