![Grandfathering](https://img-cdn.financeunlocked.com/headers-images/financeunlocked/1.jpg?ik-sdk-version=javascript-1.0.3)
Grandfathering
The notion of grandfathering refers to a legal situation where certain parties can continue to operate under an existing set of laws or statutes in the event a new set of statutes come into effect. New parties coming into the purview of the new statutes will have to abide by them, creating a two-tier system. Grandfathering can have limitations, restrictions or time limits.