Regulating the consumer? Recent trends in regulation and supervision policy of the financial sector

Abstract

The financial crisis of 2008 questioned the belief on markets’ ability to regulate themselves, as well as on the decision-making ability of economic agents. The need to tighten the regulation and supervision of the financial sector became apparent. In what regards, specifically, the protection of the consumers of financial products, we observe a renewed interest on financial education initiatives. The present article critically analyses these initiatives. Even though the intrinsic difficulties of financial decisions are recognised, their success is seriously undermined by what is known about the behaviour and the role of the wider socioeconomic context on the financial situation of households.