BoE's Fisher warns on ETF complexity risks

In a speech to the Institutional Investor Institute, Paul Fisher, a member of the Financial Policy Committee (FPC) and Monetary Policy Committee, highlighted the developments in markets for ETFs as an example of financial innovation and growth in a "previously small market". He said: "ETFs are in principle a ‘good' financial innovation - for example, they offer retail investors a cheaper way of getting exposure to the underlying asset (by cutting out the fund manager) and provide a very liquid asset. "Nonetheless, the rapid growth in ETF assets under management merit attention, given ...