bruncher wrote:Reminds me of the UK regulator restricting which bonds are available to 'retail' investors - in the name of protecting retail investors, but actually restricting competition.
I think that is slightly unfair. The argument of the regulator is that people don't understand the complexity of the instruments. My view is that it is unfair to do this because it prevents retail investors having access to the better interest rates. It is not, however, a question of restricting competition.
The fact is, however, that investing in equity is quite complex anyway as you cannot be certain what is going to happen. You can make assessments. However, although it is often best for people to buy funds actually the regulator should not prevent retail investors from buying the underlying equities.
Some bonds (eg Tullow) have minimum quantities of USD100K or more. I personally think that is unfair as few people can invest such sums and keep the level of concentration to a sensible amount.
The problems that need better action are thinks like Wirecard and CAKE. That, I think, however, is really about the process of appointment of auditors which really does need work on. Also things like LCF which are orientated at retail investors, but are much more risky investments than listed hybrid instruments.
Then again we have claims managers encouraging claims where people have lost money on Shares ISAs.
The really big problem is that the more certainty you want the less return you are likely to get. That is a much bigger issue for smaller scale investors.