Transparency is a necessary but insufficient means of helping retail investors make their choices, the European Commission’s Financial Services DG (DG FISMA) concluded (see EUROPE B12949A31) in a study on disclosure, inducements and suitability rules for retail investors, published on Tuesday 2 August.
Indeed, transparency addresses some of the needs of investors and some of the behavioural biases affecting the decisions of potential investors, as these documents aim to make their...