Architas chief investment officer Caspar Rock - who has a small amount of exposure to contingent convertible securities (CoCos) though the firm's multi-asset active range - worries that the regulator's move to ban the product to retail investors may be just the start.
The FCA believes CoCos are "highly complex" and that they are unlikely to be appropriate for the mass retail market. As a result it has stepped in to temporarily restrict their distribution to only professional, institutional and sophisticated or high net worth retail investors from 1 October 2014 for 12 months, ahead of consulting on permanent rules later this year. > Read: FCA temporarily bans sale of CoCos to mass market < Architas has exposure to CoCos through the Pimco Capital Securities fund across the Architas multi-asset active range, thought it is only between 2% and 3% of ...
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