Finra furthers US complexity debate
Finra's January notice warns firms to increase supervision on complex products and introduces notion of post-approval review
The US Financial Industry Regulatory Authority (Finra) has issued a notice identifying characteristics of complex products. These features should establish whether a product should be subject to heightened supervisory procedures, according to the regulator.
Potentially complex products include those with an embedded derivative component or contingencies in gains and losses, structured notes with 'worst-of' features, inverse or leveraged exchange-traded funds and those tied to the performance of
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