Beware unintended consequences of ‘transparency’ rules

Since the global financial crisis, financial regulators worldwide have pushed for more product transparency. A raft of measures have been introduced to address issues such as information asymmetry and conflicts of interest. It is hoped this will give investors more visibility about what happens within the value chain, and how manufacturers and distributors have provided value for money. And hence they will be empowered to make informed decisions. This approach is epitomised in i…