ΡΥΘΜΙΣΤΙΚΟ ΔΙΚΑΙΟ ΚΑΙ ΣΥΜΠΕΡΙΦΟΡΙΚΗ ΧΡΗΜΑΤΟΟΙΚΟΝΟΜΙΚΗ

Regulatory Law and Behavioral Finance: Irrational investment decisions and the role for soft paternalistic interventions Theodoros Zervas, Attorney at Law, MSc ISBN 978-960-622-648-9 Abstract: This book aims to incorporate insights from behavioral finance and be- havioral economics into securities regulation in the EU. After a brief summary of the history and principles of behavioral finance, chapter one emphasizes on the most common investment mistakes, indicating the irrationality of many decisions in the financial markets. In search of a way to improve investors’ protection, chapter two presents the field of behavioral law and economics, highlighting Thaler’s and Sun- stein’s“nudge theory”as the best answer to the problem, despite the respective anti- paternalistic objections. In chapter three, a review of the current legal framework unveils certain insufficiencies, since the quantity of information that is provided to investors,especiallyretail investors,seemstobehardlyprocessedbythem.Thebook ends with proposals for a more effective protection of investors’ interests, including among others better categorization, quality of information, default rules, as well as financial education. COPYRIGHT All rights reserved. No part of this publication may be reproduced, stored in a re- trievalsystem,ortransmitted, inany formorbyanymeans,withoutthepriorpermis- sion of NOMIKI BIBLIOTHIKI S.A., or as expressly permitted by law or under the terms agreed with the appropriate reprographic rights organisation. Enquiries concern- ing reproduction which may not be covered by the above should be addressed to NOMIKI BIBLIOTHIKI S.A. at the address below. DISCLAIMER The content of this work is intended for information purposes only and should not be treated as legal advice.The publication is necessarily of a general nature; NOMIKI BIBLIOTHIKI S.A. makes no claim as to the comprehensiveness or accuracy of the information provided; Information is not offered for the purpose of providing indi- vidualized legal advice. Professional advice should therefore be sought before any action is undertaken based on this publication. Use of this work does not create an attorney-client or any other relationship between the user and NOMIKI BIBLIOTHIKI S.A. or the legal professionals contributing to this publication. 23 Mavromichali str. | 106 80 | Athens | Greece T +30 210 3678 800 | F +30 210 3678 819 www.nb.org | info@nb.org © 2019, NOMIKI BIBLIOTHIKI S.A.