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Risk Tolerance Tools: From Academia to Regulation and Back

In: Understanding Financial Risk Tolerance

Author

Listed:
  • Caterina Cruciani

    (Ca’ Foscari University of Venice)

  • Gloria Gardenal

    (Ca’ Foscari University of Venice)

  • Giuseppe Amitrano

    (Wieldmore Investment Management)

Abstract

This chapter takes a closer look at the implementation of the first compliance tool to measure risk tolerance in the European Union—the MiFID suitability questionnaire. The literature review carried out in Chapter 1 has clearly identified the key dimensions of variability that characterized the academic notion of risk tolerance up to the introduction of the suitability questionnaire. This chapter sets out to understand to what degree this notion has helped define the implementation of the suitability requirement in European Regulation ranging from the original requirements proposed in MiFID to the changes introduced with MiFID2 and successive modifications.

Suggested Citation

  • Caterina Cruciani & Gloria Gardenal & Giuseppe Amitrano, 2022. "Risk Tolerance Tools: From Academia to Regulation and Back," Springer Books, in: Understanding Financial Risk Tolerance, chapter 0, pages 39-78, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-13131-8_2
    DOI: 10.1007/978-3-031-13131-8_2
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