Shedding Light on Non-Financial Risks – a European Survey

Shedding Light on Non-Financial Risks – a European Survey — January 2012

3. The Need for Change in Regulation and Risk Management Practices

Similar information for professional and retail investors, but less protection on distribution and restitution for professional investors We also asked whether requirements should be aligned for retail and professional investors. According to our respondents, regulation on distribution

should differ: 55% believe protection and information requirements should be lower or greatly lower towards professional investors, while only 30% think it should be the same. Respondents are somewhat more split on requirements regarding transparency, information and governance: 24 % of respondents

Figure 3.7.3: For each area, how should protection and information requirements towards professionnal differ from those towards retail investors?

Figure 3.7.4: Country group average of stringency for professional vs retail investors For each area, how should protection and information requirements towards professionnal differ from those towards retail investors?

“Fr” is France, “UK” is the United Kingdom, “Ge+Au+Nl” is Germany, Austria and the Netherlands, “Lux+Irl” is Luxembourg and Ireland, and “RoE” is the rest of Europe. Answers are coded in the following manner: -2 for Greatly lower towards professional investors, -1 for Slightly lower, 0 for Neutral, 1 for Slightly higher, 2 for Greatly higher towards professional investors.

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An EDHEC-Risk Institute Publication