kaal:claim:1428387-037

Regulation targeted only at retail investors is misdirected, because incomplete and asymmetric information, bounded rationality, and moral hazard make it difficult even for professional and semi professional investors to discern the characteristics of highly complex instruments and hard-to-value assets.

Source quote, verbatim

Incomplete and asymmetric information, bounded rationality of decision makers and moral hazard make it difficult for professional and semi professional investors to discern the different characteristics of many highly complex financial instruments and

From

Kaal, Hedge Fund Valuation Retailization, Regulation, and Investor Suitability (2009), VI.E Level of Retail Investors Triggering Asset Allocation, p. 52
https://ssrn.com/abstract=1428387 · source PDF

Cite as

Kaal, Hedge Fund Valuation Retailization, Regulation, and Investor Suitability (2009). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1428387

Holds when

for highly complex financial instruments and hard-to-value assets

Classification

failuresupport: arguedfailure: retail-only-targetingfamily: investor-protection-gaprisk-and-incentivesdisclosure

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