Investors cannot be counted on to make rational choices so regulators need to "step into their footprints" and limit or ban the sale of potentially harmful products, the head of the UK's new consumer protection watchdog said.
In an interview with the Financial Times, Martin Wheatley, who will head up the Financial Conduct Authority (FCA), said the 2008 financial crisis had fundamentally reshaped regulators' assumptions about consumers. "You have to assume that you don't have rational consumers. Faced with complex decisions or too much information, they default ...
To continue reading this article...
Join Professional Adviser
- Unlimited access to real-time news, industry insights and market intelligence.
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters.
- Make smart business decisions with the latest developments in regulation, investing retirement and protection.
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes.