Finra bears down on complex structured products
Topping the regulator's list of priorities for 2014 is ensuring that US brokers make adequate enquiries before offering complex products to retail investors
The Financial Industry Regulatory Authority (Finra) will crack down on brokers who sell "complex" structured products to retail investors without first making sure their customers fully understand what they are buying, the regulator said on January 2.
In its annual letter announcing its priorities for 2014, Finra said brokers are not giving investors enough information about the derivatives embedded in complex structured products or the risks associated with the products, including the risk that
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