Kate Cowling of Money Management reports on why investor differentiation is so important. The Murray Report has put the onus on product providers and financial product distributors to have better product design, and distribution processes. This is expected to provide better consumer outcomes. Having a clearer distinction between Retail Investors and Wholesale/Sophisticated Investors in the distribution process can help head off risks such as inappropriate disclosure. More product providers are recognising the importance of sophisticated investor compliance and are incorporating better practices and processes into their compliance regime by using Cygura.
