FIA EPTA has responded to a consultation by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), supporting product intervention regarding turbo certificates for German retail investors. FIA EPTA members traditionally advocate for freedom of choice and are generally skeptical of product intervention. However, we observe negative outcomes for many retail investors from a lack of competition and a lack of any obligation to continuously price these instruments. Further, we urge BaFin to extend these measures to warrants, which share many of the same characteristics and risks.
Please find the consultation response here.
