Transparency, right of withdrawal and contract voidability in the Italian law on door-to-door sales of financial products

Riccardo Ghetti

Banca Impresa Società, 2015, issue 2, 233-268

Abstract: Italian rules on door-to-door sales of financial products are far from clear. Including a right of withdrawal and transparency requirements linked to a contract voidability mechanism, they are burdensome and encourage client opportunism. An analysis of both the structure of the relevant legal rules and their judicial enactment shows a lack of balance between the need for client protection and firm's right to sell products and services on clear and fair terms; this in turn leads to systemic inefficiencies and to an increase in client costs. Misuse of contract invalidity rules by courts and matching strategic behaviours by plaintiffs also emerge. Door-to-door sales regulation now in place should be repealed and replaced with an extension of suitability requirements as provided by MiFID for investment advice and portfolio management services to all door-to-door sales contracts.

Keywords: Door-To-Door Sales; Financial Products; Mifid; Investment Firms; Investor Opportunism. (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.rivisteweb.it/download/article/10.1435/81928 (application/pdf)
https://www.rivisteweb.it/doi/10.1435/81928 (text/html)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mul:jqmthn:doi:10.1435/81928:y:2015:i:2:p:233-268

Access Statistics for this article

More articles in Banca Impresa Società from Società editrice il Mulino
Bibliographic data for series maintained by ().