Treat with care

Author: IFLR Correspondent | Published: 15 Dec 2016

There are calls for the regulatory focus in the financial services industry to shift away from the authorisation of products towards the needs of investors

One of the key themes identified by the G2O and the OECD following the 2008 global financial crisis was the protection of investors and consumers. Both organisations recognised that 'investors suffered significant losses during a financial crisis that was stimulated in large part due to flawed practices and structural weaknesses of the financial institutions' and that 'consumer confidence and trust in a well-functioning market for financial services promotes financial stability, growth, efficiency and innovation over the longer term'.

It was also recognised in the G20's 2011 high-level principles on financial consumer protection that a risk to consumers arises from 'increased transfer of opportunities and risks to individuals and households in various segments of financial services, as well as the increased complexity of financial products and...