A new approach to financial regulation: the blueprint for reform
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To promote their long-term interests, people need to identify crucial financial choices and deal with them in a timely, knowledgeable and coherent fashion. The FSA (2006) pinpoints five dimensions of financial capability and provides a comprehensive snapshot of their distribution in the UK population. 1 In the light of these findings, a National Financial Capability Strategy has been formulated to improve decisions. Our paper aims to draw lessons relevant to this endeavour from the flourishing field of behavioural economics. There is no doubt that many people are poorly informed about basic issues in personal finance and take decisions that are difficult to interpret...
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