For the framework of consumer protection to be effective, it needs more than regulation alone. It must be complemented with supervision, enforcement, and financial education. Let me elaborate briefly on the approach of the Bank of Italy.
Based on the understanding that too much information is as potentially harmful as too little information, and that such “information overload” can lead consumers to take financial decisions that they will consider inappropriate in retrospect, the traditional regulatory approach based on a full disclosure regime has evolved.