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

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