European regulators want to shine a light on the murky world of retail structured products. The crucial issue, they say, is one of disclosure. Investors often did not understand the risks of certain products, overwhelmed by reams and reams of dense, legal jargon within prospectuses, designed more to protect the issuer from legal challenge than provide a clear, easy-to-understand explanation of the risks involved.
This is set to change. The European Securities and Markets Authority (Esma) (former