Tag Archives: behavioral finance

Catching the Careless Nudists: The Behavioural Regulators’ Agenda

careless swimmers

By: Dr Roger Miles

“Only when the tide goes out do you discover who’s been swimming naked” – Warren Buffett

Part 1: It’s all going a bit mainstream

Suddenly behavioural regulation is more than just a fashionable theory: it is real, and compliance with its mandate is becoming very expensive. Financial service providers are being fined huge sums, not just for the bad behaviour they have inflicted on customers, but also for actions that they have not taken that have negatively impacted their customers, with regulators prepared to punish sins of omission as well as commission[1]. The first of the self-styled Behavioural Regulators, the UK Financial Conduct Authority, is now a voluble two-year-old, talking up its latest behavioural research to every audience and blazing a trail that other regulators increasingly follow[2]. Continue reading Catching the Careless Nudists: The Behavioural Regulators’ Agenda