ASIC: why behavioural economics is the future

Author: Gemma Varriale | Published: 24 Sep 2013
  • According to Greg Medcraft, chairman of the Australian Securities and Investment Commission, regulators need to use behavioural economics to help them understand market forces;
  • People are not necessarily rational, and supervisors need to focus on regulating for real people, said the Australian regulatory chief;
  • How choices are presented to investors is a key concern: regulators need to understand why people choose particular financial products;
  • Medcraft advocated the presentation of information in multi-layers and via non-traditional channels to make it easier for investors to analyse information.