Denmark’s new retail risk labels 'too broad and inflexible'
Danish regulations that divide investments into three categories of risk are too broad and will stunt structured products activity, say market participants
The Danish Financial Services Authority (FSA) has put in place a traffic-light labelling system that divides all investment products aimed at the retail market into three categories according to risk and complexity criteria, but market participants say its approach is broad and indiscriminate, and fails to achieve its goal of greater transparency and investor protection.
"This divides the market in three categories, [but] does not really support the retail investor because the categories are
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