Minister for investment Johnson: 'If you do not have risk, you cannot generate returns'

‘Do not overregulate’

James Baxter-Derrington
clock • 3 min read

Minister for investment Dominic Johnson applauded the Financial Conduct Authority’s move to simplify the UK listings regime, but warned against removing all risk from the financial ecosystem.

Speaking to Investment Week, Johnson, co-founder and former CEO of Somerset Capital Management, argued that reducing risk in markets to zero is "not a good ambition". "If you do not have risk, you cannot generate returns," he said. FCA eyes simplification of UK listing rules Johnson argued the typical assumption that "liquidity is assumed to reduce risk" is not true, but noted the difficulties associated with illiquid investments. He warned that investors should not "become obsessed" with fees, charges and liquidity when assessing investments, and regulators should not "overregu...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Asset Managers

Henry Adefope (pictured), director at Tavistock Communications

Should boutique asset managers care about corporate PR?

One in six set to disappear in next four years

Henry Adefope
clock 17 October 2023 • 4 min read
There was also feedback on whether non-UCITS funds might be rebranded to help rationalise the regime, and if so, how best to do this.

FCA to consult on amending regimes for alternative fund managers and retail funds

Three main priorities for reform

Valeria Martinez
clock 12 October 2023 • 3 min read
The scheme meeting and vote has been delayed to 13 December 2023.

Woodford investors to vote in single class as scheme of arrangement vote delayed

Sanction hearing 18 January

James Baxter-Derrington
clock 12 October 2023 • 3 min read
Trustpilot