"No financial regulator can prevent all losses from occurring," Greg Medcraft, chair of the Australian Securities and Investments Commission told a Senate inquiry yesterday."Our system is designed this way because removing losses would substantially reduce economic growth, individual choice and returns to investors."Preventing all potential losses from poor products, misconduct or criminal activity would involve highly expensive and intrusive regulatory intervention. "Other financial systems around the world are designed in a similar way. "While loss can never be entirely removed from financial markets, we work hard to enforce the law and deal with misconduct that puts investors at risk."