Growing capital needs and increased investor appetites for yields in a low interest rate environment in Asia have spurred the proliferation of investment products to meet those needs. In recent years, a range of products have been sold that have embedded risks that are not easily understood or well explained. Significant cases of mis-selling and fraud have revealed both retail and institutional investors' vulnerability.
This panel discussion will examine the underlying causes leading to investors making investment product decisions that are inappropriate, including behavioral shifts among investors, trends in product innovation and investment firm profitability, and development of regulatory frameworks. The panel will consider the impacts on capital market integrity and consider the balance between investor accountability for their own decisions and suitability and fairness requirements of investment product manufacturers. Finally, an appropriate regulatory response will be debated.