An Experimental Investigation of Suitability Assessments
Testing Its Effectiveness Using a Randomised Controlled Trial (RCT)
about this report
Continuing our mission to support evidence-based policymaking, ICMR presents an innovative study: “An Experimental Investigation of Suitability Assessments: Testing its Effectiveness Using a Randomised Controlled Trial (RCT).” This report sheds light on how improved suitability assessments can redefine investor protection and financial inclusion.
The study explores key research questions, including:
- How reliable are investors’ self-reported perceptions of financial literacy, risk tolerance, and vulnerability?
- Can an objective scoring method help identify investor vulnerabilities more effectively?
- Does knowing their vulnerability score influence investors’ willingness to disclose information to financial advisors?
By comparing traditional self-reported methods with advanced automated scoring, the research reveals significant gaps between investors’ self-perceptions and their actual financial profiles. These findings highlight the transformative potential of objective assessments in accurately identifying vulnerabilities and empowering better financial decision-making.
Ultimately, the study underscores the importance of integrating evidence-based tools to enhance investor protection and promote informed decision-making.
Click below to download the full report and uncover the research’s complete findings and actionable recommendations.
