Drive to reveal 'hidden' costs in structured products risks confusing investors, says DDV

Regulators are looking at rules on cost disclosure in an attempt to boost transparency in structured products. But are they in danger of confusing investors with too much detail? Christian Vollmuth, managing director of industry body Deutscher Derivate Verband, argues that comprehensiveness does not always mean comprehensibility

Christian Vollmuth, Deutscher Derivate Verband

Last year, one of the major topics for structured product regulation was product complexity. Although the issue is still somewhat under discussion, regulators have rightly come to agree that complexity and risk are two separate issues that should not be confused. As the Esma report, Retailisation in the EU, correctly states: "For instance, there are simple products... that might be riskier than others with higher complexity."

This year, all signs point to cost disclosure being a major topic of