FSA's commodities warning for advisers

In its paper, entitled ‘Growth in Commodity Investment: risks and challenges posed for commodity market participants’, the regulator says the main danger comes from firms developing products for retail investors without sufficient knowledge of the sector. A shortage of financial services professionals who understand commodity markets was also cited as a potential issue and could, it says, result in consumers buying products they don’t fully understand. The regulator says the recent growth in commodity markets with record prices, high volatility, and the high returns to be gained have attr...