"As these regulators apply standard economic definitions to these wealth vehicles, they aren't doing it to rob you, to centralize or to get more taxes. etc etc"
<---This is not right, is precisely for to get some degree of control. It does not mean that is not necessary be careful with fraud.
But the SEC and other regulators do not comply with the implementation of consumer protection really, is just an illusion, in fact they rule the structure in a way to guarantee the benefits for some agents and make asymmetries prevail.