Aging Boomers, Low Yields Lead Regulators to Warn on Complex Products
The "boomer bulge" in the US aging demographic, combined with a persistent low-interest-rate environment, leads regulators to renew their warnings about retail sales of complex investment products to older investors. SEC Commissioner Aguilar told an April 14 meeting of state securities regulators that the two agencies should work together to increase disclosure regulations and enforcement actions targeting retail sales of structured notes and other complex products. The structured notes market is a $45 Billion market, of which about 99% is sold to retail investors, said Aguilar. The SEC issued an Investor Bulletin on structured note products earlier this year. His remarks are here. Just a day later, the SEC's Office of Compliance Inspections & Examinations issued a joint report with FINRA, the "National Senior Investor Initiative" (April 15, 2015). The Report expressed concern over sales of complex and alternative investment products to seniors. Thomas K. Potter, III (tpotter@burr.com) is a partner in the Securities Litigation Practice Group at Burr & Forman, LLP. Resident in the Nashville office, Tom is licensed in Tennessee, Texas and Louisiana. He has over 28 years' experience representing financial institutions in litigation, regulatory and compliance matters. See attorney profile. © 2015 by Thomas K. Potter, III (all rights reserved).
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PartnerTom Potter is a Partner in the firm's Nashville office, and his practice focuses on securities, corporate disputes, and appellate litigation. Tom has over 35 years of experience representing business interests.
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