Doug Brodie's Chancery Lane calls on regulators to review risk definition

'Making up the cake of a total return'

Julia Bahr
clock • 2 min read

Chancery Lane chief executive Doug Brodie has written to the Financial Conduct Authority (FCA), calling on the regulator to redefine risk classifications to better reflect income needs.

Brodie said he wanted the FCA to view income and capital as separate retail products. He also said there was no correlation between equity market risk to capital and the stability of dividends. "We need to stop just communicating total return payments and show Joe Public what the income will look like," he said. Observing that capital volatility of long-term assets masks the stability found through steady dividend streams, he said the broader funds industry is doing investors a disservice by not addressing this issue. "Telling an 80-year-old, who doesn't work, that they have to sit...

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