This paper proposes a policy framework for intercepting, monitoring and containing the unintended harmful effects of financial innovation. The current approach, adopted by several authorities, makes extensive use of the tools of transparency and disclosure, mainly for consumer protection. It has...

This paper proposes a policy framework for containing the unintended, and potentially harmful, effects of financial innovation. The total costs of conduct failures are often related to innovative products or services. The current approach, adopted by several authorities, makes extensive use of...