What is the impact of non-compliance with regulatory requirements?

Non-compliance with regulatory requirements can indeed result in disciplinary action or legal consequences. Regulatory bodies are established to ensure that professionals adhere to a framework of rules designed to protect clients and maintain the integrity of the industry. When an individual or organization fails to comply with these regulations, it can trigger various responses from regulatory agencies, which might include fines, penalties, suspension of licenses, or even criminal charges depending on the severity of the breach.

These consequences serve as a deterrent to ensure that all professionals maintain high standards of conduct and service, reinforcing the importance of compliance in fostering a trustworthy and reputable industry. In contrast, the other choices imply positive or negligible effects of non-compliance, which do not accurately reflect the serious implications that can arise from failing to adhere to established rules.