ERIC Number: EJ1279987
Record Type: Journal
Publication Date: 2020
Pages: 16
Abstractor: As Provided
ISBN: N/A
ISSN: ISSN-1052-3073
EISSN: N/A
Potential Consumer Harm Due to Regulation on Financial Advisory Communication in the FinTech Age
Journal of Financial Counseling and Planning, v31 n1 p146-161 2020
This article examines potential consumer harm that may arise due to regulating modern financial services communication technology with rules written in the early 20th century. It is argued that disparities in record keeping regulation across communication mediums disincentivizes the use of technology capable of generating records for consumer retention, while incentivizing the use of technology which shields financial advisors from accountability. Experimental evidence is provided in support of this argument. Further, it is argued that regulation disparities across communication mediums may result in more wrongful accusations of advisor misconduct, less reporting of genuine misconduct, less self-policing among industry members, and greater unrectifiable consumer harm. Objections to these arguments are considered, along with practical guidance for consumers, regulators, and policy makers. [This manuscript was presented at the 12th Biennial Conference of the Asian Consumer and Family Economics Association (ACFEA).]
Descriptors: Money Management, Consumer Economics, Accountability, Finance Occupations, Counselors, Information Technology, Ethics, Guidance, Deception, Electronic Mail, Telecommunications, Counselor Client Relationship
Association for Financial Counseling and Planning Education. 1500 West Third Avenue Suite 223, Columbus, OH 43212. Tel: 614-485-9650; Fax: 614-485-9621; Web site: https://connect.springerpub.com/content/sgrjfcp
Publication Type: Journal Articles; Reports - Research; Speeches/Meeting Papers
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A