Norway tightens rules on retail structured products
Norway’s Financial Supervisory Authority (FSA) has tightened rules regarding the sale of structured products to retail investors. The revised regulations are an attempt to prevent financial institutions selling complex instruments to retail investors, which the FSA believes are not always aware of investment risks.
“We made an enquiry this autumn which showed that many of the retail investors had bad investments with very low profits, especially those with a credit scheme,” says Eystein Kleven, head of section, securities institutions at Kredittilsynet, Norway’s FSA. The new regulations make it illegal for advisors to promote structured products to retail customers, as the government maintains that most Norwegians, or non-professionals, do not understand them.
“The regulations make it illegal for advisors
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