Jump to ContentJump to Main Navigation
Principles of Financial Regulation$
Users without a subscription are not able to see the full content.

John Armour, Dan Awrey, Paul Davies, Luca Enriques, Jeffrey N. Gordon, Colin Mayer, and Jennifer Payne

Print publication date: 2016

Print ISBN-13: 9780198786474

Published to Oxford Scholarship Online: October 2016

DOI: 10.1093/acprof:oso/9780198786474.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 05 June 2020

Financial Products

Financial Products

(p.245) 12 Financial Products
Principles of Financial Regulation

John Armour

Dan Awrey

Paul Davies

Luca Enriques

Jeffrey N. Gordon

Colin Mayer

Jennifer Payne

Oxford University Press

Financial products are contracts offered by financial-sector firms with a view to meeting the financial needs of their customers. This chapter first reviews common types of retail financial product (both old, like investment funds, and new, including structured products and exchange traded funds), and then considers the principal regulatory strategies to protect consumers of these products. Traditionally, regulation has focused on disclosure, intended to enable consumers to make better decisions. However, disclosures alone are often insufficient to improve consumers’ financial decision-making, as consumers often simply do not take them into account. A more interventionist approach to this concern is to regulate the terms of the product directly: product regulation. However, this is fraught with difficulties, owing to the heterogeneity of consumer preferences and the context-sensitivity of prescriptions for improving outcomes. A third approach, product governance, which focuses on the procedures firms develop for product design, appears to hold more promise.

Keywords:   financial products, investment funds, structured products, exchange traded funds, disclosure, product regulation, product governance

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .