To ensure a nudge is ethical, the research detailed, transparency is "vital" and can be achieved by involving the target audience in the design of a nudge and determining their opinion after experiencing it.
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Martha Ferez, managing principal at Capco, said: “The consumer duty is fast approaching and firms need to be in a position to fully integrate the regulatory changes into their processes, products and services.
“Behavioural Science is key to helping firms prepare for these changes, and behavioural insights can be used to inform the design of tailored and ethical behavioural interventions that can provide the necessary controls to ensure consumers have good outcomes.”
Providing an adviser's perspective, Thameside Financial Planning director, Tom Kean, stated: "I’ve often thought that having some sort of qualification in behavioural psychology would be advantageous in lots of aspects of our job as financial planners.
"It’s the side of what I do that is most appealing to me and thoroughly enjoy digging deeper into people’s lives to try and position things better for them."
Kean said that while he thinks there maybe some value in this science, "ultimately your experience is the most ingredient that people are buying."
"I am sure that studying this area would help, which would no doubt overflow into bits of the consumer duty, but ultimately, whether you know it or not, this is what experience is all about," he added.
tom.dunstan@ft.com
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