Strategies for Building Financial Capability over the Life Course
2015 YEAR IN REVIEW
2015 was an exciting and productive year for all of us at the Center for Financial Security. Download a summary of the highlights of our projects, publications, events, and accomplishments from throughout the year, as we look forward to an equally productive 2016!
Debbich shares some personal experiences from his attendance at the conference:
As a CFS fellow and economist at the French securities markets regulator, I was invited to present a paper on the interactions between financial literacy levels and the demand for professional financial advice. The paper I presented aims at explaining why investors with low financial capabilities tend to ask less often for advice than their financially literate counterpart. Using a simple theoretical model and an empirical assessment on French data, I show that product-biased compensation schemes tend to alter the relevance of the information provided by financial advisors, in particular when facing investors with low financial sophistication. Given this pattern, investors who are the most in need of financial guidance tend not to ask for advice because they know they will not get any relevant information. My paper was well-received and I appreciated the discussion with the audience. In particular, I was given tips for improving the theoretical part of the paper and strengthen my arguments.