Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments 2010 erstellt
Beschreibung:
This paper analyzes the conflict of interest that exists when a financial institution issues and places a financial asset with credit risk among retail investors. Four regulatory measures are presented and analyzed in order to improve retail investors protection. It is shown that in this type of issues the most effective regulatory measure is that the supervisor sets a price cap. A close approach to this measure would be that the supervisor asks for independent valuations of the financial assets to provide investors and the supervisor itself with a well-founded opinion about the price of the issue. Under this approach, at least a second best social optimum is achieved