Personalised Behavioural Finance within the European Markets in Financial Instruments Directive II Framework: A Multilayered Analysis

This article explores how behavioural, psychological, and socio-demographic factors interact in shaping financial decision-making (FDM) within the framework of the European Markets in Financial Instruments Directive II (MiFID II). The objective is to define a personalised model of behavioural finance that aligns with MiFID II’s requirement for investor profiling and transparent advice. A total of 155 participants (aged 18–60) completed online questionnaires assessing financial literacy − divided into knowledge, behaviour, and attitude − together with psychological measures of impulsiveness, time perspective, behavioural activation/inhibition systems, and temperament traits. Gender differences and relationships among these variables were examined through t-tests, MANOVAs, and chi-square analyses. Results revealed that men scored higher in financial knowledge and literacy, whereas women exhibited higher behavioural inhibition. Temperament types influenced impulsiveness and time perspectives: Rationalists appeared less impulsive and more future-oriented, while Idealists and Artisans were more hedonistic and risk-seeking. Higher financial literacy was associated with more cautious investment decisions and a preference for low-risk portfolios, supporting the idea that knowledge enhances prudence rather than risk tolerance. These findings highlight the importance of multilayered profiling that integrates behavioural, psychological, and socio-demographic dimensions to improve personalised financial advice. The study concludes that the implementation of MiFID II should incorporate these multidimensional insights to foster informed, responsible, and tailored financial decision-making. Future research should extend this model by testing how such profiles influence real investment choices under uncertainty.

Authors

Institutions

Publication Details

Journal
Università degli Studi di Urbino
Published
2025-02-12
DOI
https://doi.org/10.14276/2285-0430.4945
Primary Topic
Decision-Making and Behavioral Economics
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Personalised Behavioural Finance within the European Markets in Financial Instruments Directive II Framework: A Multilayered Analysis

Luigi Trojano, Viviana Ventre, Francesco Panico, Roberta Martino et al.
Università degli Studi di Urbino
Decision-Making and Behavioral Economics
article

Personalised Behavioural Finance within the European Markets in Financial Instruments Directive II Framework: A Multilayered Analysis

Luigi Trojano, Viviana Ventre, Francesco Panico, Roberta Martino, Luigi Valio
article en

Abstract

This article explores how behavioural, psychological, and socio-demographic factors interact in shaping financial decision-making (FDM) within the framework of the European Markets in Financial Instruments Directive II (MiFID II). The objective is to define a personalised model of behavioural finance that aligns with MiFID II’s requirement for investor profiling and transparent advice. A total of 155 participants (aged 18–60) completed online questionnaires assessing financial literacy − divided into knowledge, behaviour, and attitude − together with psychological measures of impulsiveness, time perspective, behavioural activation/inhibition systems, and temperament traits. Gender differences and relationships among these variables were examined through t-tests, MANOVAs, and chi-square analyses. Results revealed that men scored higher in financial knowledge and literacy, whereas women exhibited higher behavioural inhibition. Temperament types influenced impulsiveness and time perspectives: Rationalists appeared less impulsive and more future-oriented, while Idealists and Artisans were more hedonistic and risk-seeking. Higher financial literacy was associated with more cautious investment decisions and a preference for low-risk portfolios, supporting the idea that knowledge enhances prudence rather than risk tolerance. These findings highlight the importance of multilayered profiling that integrates behavioural, psychological, and socio-demographic dimensions to improve personalised financial advice. The study concludes that the implementation of MiFID II should incorporate these multidimensional insights to foster informed, responsible, and tailored financial decision-making. Future research should extend this model by testing how such profiles influence real investment choices under uncertainty.

Università degli Studi di Urbino
University of Campania "Luigi Vanvitelli" (IT), Università degli Studi Suor Orsola Benincasa (IT)
Quality Education
Openalex Percentile: Top 21%
Decision-Making and Behavioral Economics
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.