Taiwanese regulator warns investors about foreign exchange risk
The Financial Supervisory Commission (FSC), the Taiwanese securities regulator, has published a statement advising retail investors to be aware of the foreign exchange risks inherent in structured products.
"Low interest rates are prompting many investors to seek higher returns by investing in structured notes that link deposits with derivatives," says the FSC statement. "Most of these notes currently sold by banks achieve enhanced yields by selling foreign exchange options and collecting
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