Objectives:

Upon completion of this course, participants will be able to:

• Analyze the legal and behavioral rationale for mandatory **financial product disclosures** and transparency standards.
• Critique traditional disclosure regimes and identify flaws, such as information overload and cognitive bias.
• Apply behavioral economics principles to design **simple, salient, and standardized** consumer disclosure documents (e.g., Key Fact Statements).
• Determine the legal requirements for truth in advertising and marketing, avoiding deceptive or misleading practices (**UDAAP**).
• Evaluate the role of technology (e.g., layered disclosures, digital tools) in enhancing consumer understanding.
• Develop internal policies and review processes to ensure all customer-facing communication is clear, compliant, and transparent.
• Understand the regulatory oversight process and enforcement actions related to inadequate or deceptive disclosures.
• Assess the requirements for effective disclosure across various product types (lending, insurance, investment).

• Compliance Officers and Regulatory Affairs Managers
• Legal Counsel specializing in Consumer Protection and Advertising Law
• Marketing and Communications Specialists in Financial Institutions
• Product Development and User Experience (UX/UI) Designers
• Supervisors of Market Conduct and Consumer Protection Agencies
• Internal Auditors focused on Disclosure Compliance
• FinTech Innovators and Legal Teams

• Case Studies analyzing major regulatory actions on deceptive marketing and disclosure failures.
• Group Activities in redesigning a complex financial product disclosure statement into a simplified KFS.
• Discussions on the ethical line between persuasive marketing and misleading advertising.
• Individual Exercises on reviewing a series of advertisements for UDAAP compliance.
• Workshop on drafting internal policy guidelines for product sign-off and disclosure review.
• User testing simulation of a digital disclosure interface.

Unit 1: The Regulatory Mandate for Transparency

• The legal requirement for informed consent and clear, non-misleading communication.
• Overview of key global and national disclosure statutes (e.g., TILA, MiFID, regional equivalents).
• Defining the threshold for a **Deceptive Act or Practice** (material misrepresentation or omission).
• The concept of "average consumer" and the standard for consumer understanding.

• The **Information Overload** problem and the paradox of too much disclosure.
• Behavioral biases that make disclosures ineffective (e.g., optimism bias, ignoring fine print).
• The focus shift: From providing information to ensuring consumer **understanding**.
• Principles of salience, timing, and framing in disclosure design.

Unit 2: Designing Effective Disclosures

• Best practices for developing **Key Fact Statements (KFS)** and standardized formats.
• Rules for calculating and presenting the true cost of credit (e.g., **Annual Percentage Rate - APR**).
• Using plain language, clear headings, and visual aids to enhance comprehension.
• The regulatory requirement for consistent terminology across the industry.

• Designing effective **layered disclosures** for complex products.
• Utilizing interactive digital tools to personalize and simplify risk information.
• Regulatory guidance on "click-wrap" agreements and terms of use in apps.
• Testing disclosure effectiveness through consumer testing and field experiments.

Unit 3: Compliance in Marketing and Advertising

• Regulatory requirements for all forms of communication (online, print, video, social media).
• Mandating a clear and conspicuous presentation of critical terms (rates, fees, penalties).
• Rules for testimonials, endorsements, and comparative advertising claims.
• Compliance review workflows for all new marketing materials and campaigns.

Unit 4: Product-Specific Disclosure Challenges

• Disclosure rules for variable-rate loans, balloon payments, and prepayment penalties.
• Transparency standards for investment fees, performance, and risk profiles.
• Mandatory disclosures for insurance policy exclusions, deductibles, and claim processes.
• Ensuring clear communication during account servicing and collections.

Unit 5: Supervision and Enforcement

• Supervisory expectations for an institution's internal disclosure governance.
• Regulatory tools for monitoring compliance with advertising and disclosure rules.
• Case studies on enforcement actions for deceptive marketing and inadequate disclosure.
• Developing effective corrective action and consumer remediation plans.