The FCA has published an occasional paper on behaviour economics to explore how consumers have significantly overestimated the expected returns on structured deposits.
The findings highlight the importance of firms designing structured products that are suitable for their clients’ levels of financial sophistication and note a number of areas for improvement including:
- putting customers at the forefront of firms’ approaches to product governance;
- providing customers with clear and balanced information on each product and the risks associated with it; and
- manufacturers should strengthen how products are monitored throughout the lifecycle.
Copies of the
- paper; http://bit.ly/1wj1NDH
- technical appendix; http://bit.ly/1EuAyc5
- webpage; http://bit.ly/1EuAyc5
- thematic review report; http://bit.ly/1wj1E2V
- Ignition House qualitative research; http://bit.ly/1Hlyod1
- and press release http://bit.ly/1CUauGO
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