Do your homework on ETFs

New guidelines have been drawn up to protect consumers of financial products such as exchange-traded funds (ETFs). But it's still vital you do your research, says Paul Amery.

Since 2008, regulators have aimed to take a tougher stance on protecting consumers of financial products. "More intensive supervision" and "a more aggressive approach to enforcement" are promised by Britain's Financial Services Authority (FSA), for example.

Unfortunately, when it gets down to the nitty-gritty of product detail, it's not easy to draw a line between financial products that are "non-complex", and so suitable for sale to retail investors on an execution-only basis, and those that are complex enough to require a financial adviser's assistance, or a demonstrably greater level of sophistication in the client.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Paul Amery

Paul is a multi-award-winning journalist, currently an editor at New Money Review. He has contributed an array of money titles such as MoneyWeek, Financial Times, Financial News, The Times, Investment and Thomson Reuters. Paul is certified in investment management by CFA UK and he can speak more than five languages including English, French, Russian and Ukrainian. On MoneyWeek, Paul writes about funds such as ETFs and the stock market.