Globally recognised expert in applied decision science, behavioural finance, and financial wellbeing, as well as a specialist in both the theory and practice of risk profiling. He started the banking world’s first behavioural finance team as Head of Behavioural-Quant Finance at Barclays, which he built and led for a decade from 2006.
This is the introduction to a series giving our response to the FCA’s Call for Input on how to apply behavioural finance to help people make engaged investment choices more comfortably and confidently, and what role regulations can play in helping that to happen.
The series highlights four broad areas where better application of behavioural-finance insights can lead to better investor outcomes.
The full series is:
It’s never been easier for people to invest. Both information about investments, and means of accessing them, were until recently locked-up with only designated professionals holding the keys. They’re now difficult to escape from.
This is great in some ways: openness is key to deposing investment tyrants. But it’s dangerous in others: investment anarchy can be just as costly, and much harder to control.
With this in mind, the FCA spotlight for 2021 is shining its attention on the ‘consumer investment market’ – the environment in which people save and invest for good things, and protect themselves from bad ones – with a view to helping people make engaged investment choices more comfortably and confidently.
How can the road to increased openness, clarity, and fairness be protected from anarchic attack? How should financial freedom be balanced with protection from unintentional self-harm? Which areas of lack of consumer understanding are most important to tackle? Where are the clearest and most present dangers to consumers? Where are the current regulatory blind-spots? Which potential changes offer the biggest bang for the regulatory buck?
In December, Oxford Risk responded to the FCA’s recent Call for Input on this topic, highlighting four broad areas where better application of behavioural-finance insights can lead to better investor outcomes.
We’ll cover each of these in more detail in further articles in coming weeks.
This is part two of our response to the FCA’s Call for Input on how to apply behavioural finance to help people make engaged investment choices more comfortably and confidently, and what role regulations can play in helping that to happen.
Read MoreThis is the third post in a series giving our response to the FCA’s Call for Input on how to apply behavioural finance to help people make engaged investment choices more comfortably and confidently, and what role regulations can play in helping that to happen.
Read MoreThese are the core principles that define Oxford Risk's approach to suitability. These principles are united by applying academic insights to improve investor outcomes. They are about behavioural finance in real life.
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