Financial Product Disclosure: Insights from Behavioural Economics

Type Working Paper - Occasional Paper
Title Financial Product Disclosure: Insights from Behavioural Economics
Volume 15
Publication (Day/Month/Year) 2015
URL​rs/Financial product disclosure insights from behavioural economics.pdf
In this paper, we outline the main findings of behavioural economics research that are
relevant to disclosure in both the financial sector and other sectors. We then use these
insights to identify key issues for the development of policy for financial product disclosure.
Findings include:
• prescriptions on the length and content of disclosures help to mitigate choice and
information overload and assist investors to understand complex and technical
• where possible, financial product disclosures should be standardised and investment
risks and benefits appropriately disclosed
• the information in disclosures should be presented in a way that is balanced but still
meaningful for investors, so as to address other limitations and biases in decision
The implication is that information disclosure can influence both what people know and
what they pay attention to.

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