Regulatory Issues

In considering regulatory and compliance issues, it is important to recognize how the government works. First, the government produces regulations that attempt to regulate the activities that the government has in mind. These regulations typically identify what isn’t allowed and what is allowed under the regulations, (the “black and white” of the regulations). 

Those affected by the regulations then have to make sure they are in compliance. Sometimes, this is pretty easy based on the black and white rules. You can do this. You can’t do that. Not everyone operates as the government anticipates, however, so a gray area is introduced. The regulations may address a general topic, but not be “on point” with the specifics of a situation. In these cases, guidance can be requested from the government. 

When the government issues guidance, it often seems to be in the form of “Yes, but…” They do address specific questions, but then the application may be generalized, such as, “This activity would be allowed, provided that certain considerations are met, some of which have been identified and some of which may be unknown.” The government doesn’t want one answer in one situation to be applied too broadly to all situations. 

The result is kind of a “let-your-conscience-be-your-guide” approach. The government doesn’t answer questions about some situations until it looks to enforce compliance, (by which time, it’s too late to correct issues). The recommendation, then, is to learn as much as possible about the black and white rules, avoid the gray areas and ask for guidance or legal advice when necessary.