Martin Wheatley spoke on how FCA plans to use behavioural economics to inform its approach to regulation. He focused on how the best firms use consumer behaviour analyses to steer them towards the best products. FCA has published two papers on how behavioural economics can help it understand the mistakes consumers make and how firms respond to these mistakes. The first paper discusses behavioural biases in personal finance decisions, while the second analyses how redress letters must be laid out to encourage consumers to act upon receiving them. Martin Wheatley said that FCA’s use of behavioural economics will impact on the way it identifies risks. (Source: FCA Speaks on the Human Face of Regulation and FCA Publishes Occasional Papers on Behavioural Economics)