Published by : FCA (Financial Conduct Authority)
This paper has two parts:
In Part I we summarise the main lessons from behavioural economics for retail financial markets: how consumers make predictable mistakes when choosing and using financial products; how firms respond to these mistakes, and how behavioural biases can lead firms to compete in ways that are not in the interests of consumers.
In Part II we describe how behavioural economics can, and should, be used in the regulation of financial conduct.
Published:14 February 2014
Business Area: Risk
Type: Portable Document Format (.pdf)
Sign in to download
Register with Financial Library for access to market intelligence, data and reports from leading experts.Sign up here
More from Risk
Published by : Fidelity International
Leading with an article from Fidelity CIO for Equities Dominic Rossi, this brochure highlights opportunities for growth in the world’s advanced economies. It also features pieces from a trio of portfolio managers: Jeremy Podger, Pater Kaye and Alex Wright
Published by : Lombard Odier
Lombard Odier has been bearish on Chinese equities for the past 2 years, judging that embedded risk premia were far too thin to offset the underlying structural risks. Chinese equities are now starting to look cheap, given stable economic indicators and equity return data.
Published by : Pimco
This week saw a sharp fall in EMU ( Europe’s Economic and Monetary Union) sovereign spreads and a sharp rise in German Bund yields: 10-year Bunds rose 15 basis points (bps) on the week to 1.5%, while France 10-year spreads vs. Bunds were 10 bps tighter, Italy 30 bps tighter and Spain 68 bps tighter
Published by : Aberdeen Asset Management
Typically, bond funds are constrained by the requirement to invest in a very small or explicit universe. This can leave investors exposed to significant degrees of market risk. However, this is a risk that can be mitigated. Read the article.
Published by : Hermes Investment Management
In our second Market Risk Insights of 2016, we again try to add some colour to the current environment. The markets were skittish in the first quarter, as we predicted. Oil alone fell nearly 30%, rallied some 27%, dropped over 22%, recovered almost 60%, before falling a final 8%; an exhausting time