The Ability of the Commission to Achieve Disclosure in Financial Markets

Promoting Information in the Marketplace for Financial Services

“…135 In Germany, investments are often marketed by financial advisers at their clients' homes. Due to the bad wording of the relevant regulation, 136 financial advisers often fail to provide all the necessary information, and as a result, thousands of investors could revoke their investment decisions years later to mitigate any losses. This interaction of consumer protection and financial markets legislation thwarts the idea of investors being responsible for their investment decisions.…”

“…which, in a way, opens a door to the judicial modification of contracts'. 136 Other commentators have described it as 'imprecise and nebulous . .…”

“…135 This is closely related to the concept of 'responsive regulation' which has its roots in game theory. 136 The concept assumes that regulators will never have the resources to prevent or remedy all breaches of the law. Thus, the commission's (regulator's) actions should be responsive to the behaviour of the regulated, and the regulator should try to motivate the regulated to comply with the law on his or her own.…”

“…134 B€ urgerliches Gesetzbuch [Civil Code] (Germany) § 312 ('BGB') 135. BGB § 355(4) 136. The example given in the relevant regulation (BGBInfoV) did not meet the requirements as set out in the BGB, see Landgericht Koblenz [District Court Koblenz],12 S 128/06, 20 December 2006.…”