letter

Paul Ilott, senior investment adviser, Bates Investment Services The FSA, quite rightly in my view...

Paul Ilott, senior investment adviser, Bates Investment Services The FSA, quite rightly in my view, is very keen to make sure that funds using the full powers available to them under Ucits III, which includes the use of derivatives other than for efficient portfolio management, highlight the extra risks involved in their literature. The vast majority of derivatives are 'over-the-counter' securities (OTCs) structured by investment banks and therefore still suffer from the prospect, however slight, of the financial counterparty defaulting on its obligations. What is interesting is that ...