On Wednesday 17th July Trevor Neil presented a new course for the CISI, Behavioural Economics – The FCA and You. The regulators have issued a paper on how they see the vulnerabilities of consumers need to be protected. They look at abuses by financial firms, selling practices, advertising and using behavioural bias weakness to their unfair advantage. The ‘pay-day loan’ industry is a good example. The FCA detail how they recognise these abuses in firms and the sanctions they propose.
Trevor fist explained Behavioural Economics, its academic cousin, Behavioural finance and its affect on securities and the markets. He then looked at investor and consumer behaviour. He used practical games and tests to illustrate these are not biases of ‘other people’ but of you and I.
Th course proved popular, with good bookings and good feed back. They have decided to run it again later in the year. Demand is expected to be strong for the course because the FCA demands you understand it and do not fall fowl of their new vigilance.