-
Abstract
The purpose of this paper is to discuss the European regulatory efforts to guarantee investors a proper understanding of the characteristics of the products being offered in the retail financial market. In particular, the analysis emphasises the proposal to introduce plain language as a mandatory requirement for drafting pre-contractual documents relating to retail financial products.
The 2007-2009 financial crisis brought to attention the importance of providing investors with more information on financial products to help them make informed investment decisions. However, more disclosure alone is not enough. The quantity and quality of information to be disclosed must go hand in hand with the way the information is communicated.
Plain language is seen as an adequate tool to make information more transparent and understandable to the average investor. However, to make plain language a valuable instrument, it is necessary to enhance the ability of those who have the responsibility to apply it, that is, the financial products’ issuers and distributors.
This aspect deserves proper consideration; otherwise, the benefit of plain language will remain on paper.
European Journal of Law Reform |
|
Article | Shifting from Financial Jargon to Plain LanguageAdvantages and Problems in the European Retail Financial Market |
Keywords | financial markets, financial information, PRIPs/KIIDs, financial jargon, plain language |
Authors | Francesco De Pascalis |
DOI | 10.5553/EJLR/138723702014016003003 |
Author's information |
Purchase access
You can purchase online access to this article. You will receive 24 hrs access @ € 17,50 (excl. VAT).
24 hrs access | € 17,50 (excl. VAT) |
Activate your code
If you have an access code, please activate it here.