Protection of Retail Investors

12 Pages Posted: 12 Dec 2018

See all articles by David Merenda

David Merenda

Charles University in Prague - Faculty of Law

Date Written: December 6, 2018

Abstract

Mis-selling is a serious problem disrupting trust of investors in financial markets. As behavioural research gradually exposed, mis-selling is inextricably linked to mental weakness(es) in the decision-making process that have not been sufficiently reflected in the European financial service legislation. The recent set of legislation indicates a change in the regulatory approach to financial product distribution (FPD) and introduces new legal instruments poised to cope with mental weaknesses through a more robust and elaborate investor protection regime. This paper offers a critical review of the selected legislative amendments and surveys whether they improve the quality of investor protection; finally, it analyzes implications of Brexit for FPD.

Keywords: Retail investor, mis-selling, behavioural research

Suggested Citation

Merenda, David, Protection of Retail Investors (December 6, 2018). Charles University in Prague Faculty of Law Research Paper No. 2018/III/1. Available at SSRN: https://ssrn.com/abstract=3298559 or http://dx.doi.org/10.2139/ssrn.3298559

David Merenda (Contact Author)

Charles University in Prague - Faculty of Law ( email )

Nam. Curieovych 7
Praha, 11640
Czech Republic

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