25.11.2019 - Studies

Investing is a matter of trust

by Thomas Mayer, Marius Kleinheyer

Financial advice is a credence good. A survey of financial advisors indicates how stronger trust can be established from the advisors' point of view.

Financial advice is a credence good. However, the investment behaviour of Germans indicates a lack of trust. The academic literature has recognised and analysed the problem. A survey of 1716 financial advisors indicates how stronger trust can be established from the consultants' point of view. Financial education, a stronger orientation towards moral behaviour as well as professional standards can create trust. Government regulation, on the other hand, is viewed sceptically and runs the risk of overburdening the relationship between advisor and client.

Please note: This study is available in German only (Reading time 35 min).

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