The Research Of The Information Disclosure System Of Complex Financial Products

Information disclosure system has been considered as the ideal regulatory instrument tackling the information asymmetry between investors and borrowers,and has long been a crucial part of the regulation for financial product transactions in jurisdictions including the US and the EU.However,in the aftermath of the 2007 global financial crisis,the effectiveness of the information disclosure system in areas of investor protection and systematic risk control was largely questioned.Especially with the rapidly growing scale of the use of complex financial products,information disclosure has been observed as an instrument with intrinsic defects in spite of regulators' constant effort to improve the disclosure requirements.This dissertation will analyze the effectiveness of the information disclosure system from perspectives of law and behavioral economics,including aspects of the information failure caused by the complexity of current financial products and the bounded rationality of investors.Combined with the behavioral aspects of investors,the analysis will focus on the feasibility of the improvement of the information disclosure requirement itself as well as the introduction of regulatory instruments to supplement and support the disclosure requirement.