"it is difficult to comply with laws and regulations in highly complex regulatory environments. Two factors contribute to a system's complexity- (1) the number of components or parts in that system; and (2) the difficulty faced by third parties in making sense of how those different components (or parts) interact with each other."

With this quote in mind, please answer the following questions:

1. Are the financial services and healthcare regulatory systems complex? please provide concrete arguments to support your answer.

2. Describe at least 2 scenarios- one for each industry- in which complexity can lead to compliance failures.

3. Set forth at least one creative, out-of-the-box, proposal for reducing the complexity of regulatory systems.