Wharton Pension Research Council Working Papers

Document Type

Working Paper

Date of this Version



Drawing on the growing academic literature on financial advice to retail investors, we document both its potential in the light of complex decision making and limited financial sophistication as well as its current shortcomings. Policies mandating more disclosure, both on products and on conflicts of interest, can create benefits to consumers, but they fall short of releasing the full potential of advice, as this should be insufficient to ensure competition for high quality advice as well as better adherence to good advice. A main task for regulators and researchers is to create tools and policies to enhance such transparency.


The published version of this Working Paper may be found in the 2013 publication: The Market for Retirement Financial Advice.


Financial Advice; Performance Transparency; Disclosure

Working Paper Number


Copyright/Permission Statement

All findings, interpretations, and conclusions of this paper represent the views of the authors and not those of the Wharton School or the Pension Research Council. © 2012 Pension Research Council of the Wharton School of the University of Pennsylvania. All rights reserved.

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Economics Commons



Date Posted: 28 June 2019