WEALTH WATCH
STEPHEN CRANSTON: Behavioural flaws in investment choice are no nation’s preserve
A UK study shows that while past performance is top of the mind many are ignorant about fees, writes Stephen Cranston
So much of our financial regulation is coming from the UK. It is curious that the authorities have caught the Eurocentric regulatory bug far more than their counterparts under white rule. So you can be sure that the South African Financial Services Board (FSB) has taken a close look at a thick document known as the Asset Management Market Study. It was put out by the UK Financial Conduct Authority (FCA), which is the model for the FSB after the proposed Twin Peaks reform. One chapter was headlined How do investors choose between asset managers? Don’t be under any illusion that the British retail public has greater insight and sophistication — the behavioural flaws in picking funds are common right across the world. The FCA says that for competition to work effectively in asset management, retail and institutional investors need to be able to access, assess and act on information that allows them to identify the products and asset managers that best meet their objectives. In theory, ...
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