FCA Publishes Occasional Papers on Behavioural Economics Exploring How People Make Financial Decisions

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In his first speech as CEO of the FCA, Martin Wheatley vowed to crack down on unsuitable financial products by using elements of behavioural economics to better understand investor decisions.

The FCA is interested in behavioural economics to help the regulator understand the mistakes consumers make, how firms respond to these mistakes, how this affects competition and what interventions the FCA might consider. The FCA published a research paper on how it intends to implement behavioural economics in its work.