Retail Investors Need More Info About Complex Products

By Thomas Gorman (September 6, 2022, 6:26 PM EDT) — Investment products continue to evolve, becoming increasingly complex. The point, apparently, is to provide investors with new opportunities and the hope of better performance and returns.

As the investment products evolve however, they can become increasingly difficult for even investment professionals to understand — and near impossible to explain to main street investors. This creates an increasing burden for investment professionals to comply with their professional obligations when counseling clients and customers.

The point is well illustrated by recent U.S. Securities and Exchange Commission enforcement actions and acknowledged by commissioners.

Complex Products Enforcement Actions

The SEC’s settled proceeding involving American Financial Services…