Politics & Regulation

Retail investors need to understand risk, says ESMA chairman

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Retail investors need to understand the risk of complex investment products, according to Steven Maijoor, chairman of European Securities and Markets Authority (ESMA).

The retailisation of complex products, like the increasing use of alternative UCITS, increases the risk that retail investors do not understand the risks attached to their investments and the drivers of risks and returns, according to Maijoor (pictured).

Steven Maijoor ESMA UCITSHe was speaking at the European Fund and Asset Management Association (EFAMA) Investment Management Forum 2012.

He told the audience: “Regarding complex products, I would like to