By Antonia van de Velde and Martin de Sa’Pinto
LUXEMBOURG, March 24 (Reuters) – Regulators and fund providers agree on the need to restore investor faith in financial markets, but are at odds over how to both ease client fears and guarantee a greater degree of security.
Regulators want more information on funds and investments to ensure investors are fully aware of the risks they are taking on, but the industry faces a tough challenge in informing clients of potential risks without scaring them off.
“It is clearly a pivotal moment in the regulatory business,” Sheila Nicoll, director of conduct policy at Britain’s Financial Services Authority told delegates at the ALFI fund association’s Spring conference.
She wants regulators to be more proactive, and identify problem areas rather than waiting for problems to occur.
“We plan to scan for new risks, and intend to intervene earlier before a problem becomes widespread,” she said.