Skandia: Advisers Concerned About ETFs
Advisers are getting influenced by warnings issued by regulators about exchange-traded funds as per a survey conducted by Skandia.
Advisers are getting influenced by warnings issued by regulators about exchange-traded funds (ETFs), as per a survey conducted by Skandia, Financial Times reports. The survey reviewed 1,000 advisers, out of which 80% agreed with warnings from the Financial Stability Board (FSB) about the complexity of some of the products. The survey found that 46% of advisers have not used ETFs for any clients. However, out of those who had used the products, 75% said they found them suitable for just 10% of their clients. In April, the board alerted that ETFs may pose ‘systemic risks’, while the Financial Services Authority highlighted the product in its risk outlook earlier in 2011.
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