Attention Distribution of Current Key Investor Documents — Standardization as a Long-Term Goal of the PRIIPS Regulation

32 Pages Posted: 16 Jun 2020

See all articles by Patrick Münchhalfen

Patrick Münchhalfen

University of Hagen

Robert Gaschler

Fernuniversität in Hagen - University of Hagen

Date Written: May 22, 2020

Abstract

The regulation of financial products is generally increasing in response to misconduct or crises that have led to losses for (retail) investors. Under the guise of various directives and laws, international and national regulators have introduced rules and standards to restore investor confidence. We tested the success of these efforts by analyzing the distribution of attention in current product information sheets in an eye-tracking experiment. Our results suggest that regulation has been successful as attention profiles of the different sections of product information are highly similar for different products. This suggests first success of regulation with respect to the standardization of product information sheets, potentially leading to better investment decisions among retail investors.

Keywords: Key Investor Ducouments, Investor Protection, Regulation, Eye-Tracking

JEL Classification: G18, G28, G40

Suggested Citation

Münchhalfen, Patrick and Gaschler, Robert, Attention Distribution of Current Key Investor Documents — Standardization as a Long-Term Goal of the PRIIPS Regulation (May 22, 2020). Available at SSRN: https://ssrn.com/abstract=3607872 or http://dx.doi.org/10.2139/ssrn.3607872

Patrick Münchhalfen (Contact Author)

University of Hagen ( email )

Hagen, 58084
Germany

Robert Gaschler

Fernuniversität in Hagen - University of Hagen ( email )

Universitätsstr. 11 (TGZ)
Chair of Macroeconomics
58084 Hagen
Germany

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