How information to investors is framed is “extremely pervasive” and Consumer Duty makes it clear firms must not exploit consumer biases by presenting data in a certain way.
Speaking at PA360 today (25 April), Legal &General Investment Management head of multi-asset funds John Roe discussed reasonably foreseeable harm and how to tackle behavioural biases. He said part of Consumer Duty stated that how information is presented must not exploit consumer biases. Roe said research had shown that clients overfocus on the anchor of a question and so it is important not to give "misleading" anchors to get a desired outcome. "Consumer Duty puts the onus on us to present information in a way that will not exploit biases. Framing of information is extremely perva...
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