Robust Product Due Diligence: It’s A Necessity, Not an Option!

New product offerings continue to proliferate as Wall Street strives to meet consumer demand. What is driving this process? Among other factors, today’s low interest rate environment has all investors chasing yields into potentially unknown territory, perhaps without fully understanding all of the risks involved. Increasingly, institutional investors, who are generally sophisticated investors experienced at evaluating risks, are seeking higher yielding investments by allocating more dollars to alternative investments such as hedge or private equity funds. Meanwhile, retail investors, who may not be experienced at evaluating these risks, continue to be deeply concerned about accumulating sufficient assets to generate retirement income, thereby nudging them to take on more risk to generate higher returns and, many would argue, without understanding the risk vs. reward trade-off. An investment adviser or registered representative also must have the relevant experience to evaluate such risks.

Want to read more?

Fill in the form below to download the full article.

Loading form...

Subscribe to CSS Blog

CSS frequently publishes blog posts which are written by our team from their observations in the field, at conferences and through experiences with compliance professionals. These posts are designed to further knowledge and share industry best practices. Topics run the gamut, including Form ADV, cybersecurity, MiFID II, position limit monitoring, technology challenges and more. Complete and submit the brief form below to receive notifications when we publish new content.

Loading form...

Latest Content

How Can a Small Advisory Practice Economically Be as Cyber-Secure as Possible?

Cybersecurity is a risk that applies to firms both large and small without discrimination. Even very small advisory firms, which I’ll define as having one to five staff for purposes of this discussion, have a wealth of information worth safeguarding. Cybercrime is often a crime of opportunity. Hackers are metaphorically going door to door (computer … Continued

Will We See Liquidity Risk Management Programs in Europe Soon?

In an article posted by Ignites Europe, the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg declared that it has “stepped up its supervisory focus on the liquidity aspects that are related to the recent developments” of Neil Woodford’s flagship fund and H2O Asset Management, an affiliate of Natixis Asset Management. In the U.S., … Continued