'We get the regulation we deserve, because we don't set a high enough professional standard ourselves,' according to FinaMetrica director Paul Resnik.
In the second part of our Mifid II tapes, our three experts address to problems with risk calculations on Key Information Documents (Kids).
Bella Caridade-Ferreira, chief executive of Fundscape, said it was wrong that risk essentially boiled down to a volatility calculation, and that advisers needed to be explaining this to investors.
Graham Bentley, managing director of gbi2, proposed separating conversations about risk and volatility associated with securities themselves from a conversation with a client about risk means to them.
Resnik shed some light on the inherent behavioural biases he had observed in advisers, and suggested the industry was partly to blame for the flaws in risk calculations.
In the first part of our Mifid II tapes, the three industry luminaries called for an asset management crash course for advisers.