Brynn Rail Shares Insight Into Complex Products
As financial advisers turn to complex products to help clients navigate volatile markets and rising interest rates, regulators are more closely scrutinizing the investments.
Asset management partner Brynn Rail told Investment News that "Brokers really need to understand the products that they are selling. As the products become funkier, they're harder to understand."
That puts increasing pressure on compliance staff tracking how the investments are sold and to whom. The risk-reward trade-off needs to align with an investor's risk appetite and objectives. "When they find something close to the line, they have to dig into it," Brynn said.