Regulating the Distribution of Savings and Investment Products: Retrospect and Prospect
Abstract
The strategic importance of distribution for financial services was reflected in and reinforced by the provisions of the Financial Services Act. Through requirements relating to polarization, best advice and commission disclosure, the Financial Services Act sought to create a regulatory framework which would provide the level of investor protection which was appropriate in a market characterized by a high level of information asymmetry and a heavy dependence on commission‐based selling. In practice the desired level of investor protection has failed to materialize, and this can be attributed not so much to a failure of the principles within the Financial Services Act as to a failure in the way in which those principles have been implemented.
Keywords
Citation
Devlin, J.F. and Ennew, C.T. (1993), "Regulating the Distribution of Savings and Investment Products: Retrospect and Prospect", International Journal of Bank Marketing, Vol. 11 No. 7, pp. 3-10. https://doi.org/10.1108/02652329310046241
Publisher
:MCB UP Ltd
Copyright © 1993, MCB UP Limited