Europe should adopt US-style warning system for ETFs

In the US, broker-dealers which offer ETFs on their platforms have warning systems in place to notify investors when they are about to invest in leveraged or inverse ETFs, which use derivatives and do not always behave as an investor might expect. A similar system could be beneficial to the European market, where there have been concerns raised - most recently by BlackRock - about whether investors understand the characteristics of some ETF structures. "We had this moment in the US two or three years ago and that is what we have done at the gate-keeper level," says Scott Burns, direct...