Ought to lottery administrators be licensed?

I’ve typically marvel why monetary advisors want a license. Maybe the federal government believes that this laws protects the general public from making unhealthy monetary choices.  However what’s a foul monetary resolution?  Is shopping for a managed inventory mutual fund a foul resolution for the typical individual?  How about an listed fund?

Maybe the federal government is apprehensive that unregulated monetary advisors may supply poor recommendation, akin to encouraging folks to imagine that purchasing lottery tickets is an efficient technique to get wealthy.  Then again, if that have been the motive then why would authorities officers offer this kind of recommendation:

Lottery officers introduced Monday that it’ll price $5 to play Mega Tens of millions, starting in April, up from the present $2 per ticket. The value improve will likely be one among many modifications to Mega Tens of millions that officers mentioned will lead to improved jackpot odds, extra frequent big prizes and even bigger payouts.

“Spending 5 bucks to change into a millionaire or billionaire, that’s fairly good,” mentioned Joshua Johnston, director of the Washington Lottery and lead director of the group that oversees Mega Tens of millions.

Is Joshua Johnston providing good funding recommendation?  Is he a licensed monetary advisor? 

On a extra critical observe, I believe that the precise motive behind the licensing requirement for monetary advisors is identical because the precise motive behind all different occupational licensing restrictions–the safety of incumbents towards newcomers. 

Some would argue that the Bernie Madoff scandal confirmed the necessity for licensing necessities.  Truly, that case confirmed the precise reverse; licensing necessities don’t deal with the central drawback within the monetary providers trade, which is ethical hazard.  

Primarily based on what I’ve noticed, the first drawback within the monetary providers trade just isn’t unlicensed professionals recommending the unsuitable shares, it’s licensed professionals encouraging their purchasers to spend money on a approach that advantages the monetary advisor.  Requiring monetary advisors to be licensed does nothing to repair that drawback.  Certainly it’d lull peculiar traders into overconfidence, “If this man is licensed, then he have to be certified.”