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July 22, 2011 ESMA has published a discussion paper setting out policy orientations on guidelines for UCITS Exchange-Traded Funds and structured UCITS. ESMA has reviewed the current regulatory regime applicable to such funds and considers that the existing requirements are not sufficient to take account of the specific features and risks associated with these types of fund. In the discussion paper, ESMA examines the possible measures that could be introduced to mitigate the risk that particularly complex products, which may be difficult to understand and evaluate, are made available to retail

FINRA's first podcast in a three-part series on its 2013 regulatory and examination priorities focuses on the suitability of complex products. According to FINRA, due to low yields in fixed-income products, brokers and customers alike have been looking for higher yields through complex products. FINRA's concern is that brokers may not fully understand these products and, thus, fail to communicate adequately such products' risks and returns to customers. The podcast notes that examiners will place greater scrutiny on recommendations of the following products: business development companies

FINRA has issued its 2014 Regulatory and Examination Priorities letter, which highlights significant risks and issues that could adversely affect investors and market integrity this year. The letter addresses topics related to business conduct, fraud, financial and operational concerns, as well as market regulation priorities. Additionally, FINRA has noted that it will update its view on risks throughout the year identified and encourages firms to be dynamic in their assessment of risks.As to suitability issues, which FINRA identifies as one its major concerns, FINRA points to the following