Vegas says prospectuses too complex (2)

(see related stories on Vegas, Banca Etruria) (ANSA) - Milan, May 9 - Giuseppe Vegas, the head of Italian market regulator Consob, admitted Monday that prospectuses for financial products were often too complicated for the general public. But he also said that the risks were clear in the documents for bonds in four small Italian banks, which are now worthless after a rescue last year. Many small investors who lost money in bonds in those banks say they were deceived about the risks. "The prospectus is a document that is too long and complex to be read and completely understood by a saver," Vegas said. But he said that the bond prospectuses for the four banks, Banca Etruria, Banca Marche, Cassa di Risparmio di Chieti (CariChieti) and Cassa di Risparmio di Ferrara (CariFe), did highlight the potential pitfalls.
    "The prospectuses were drafted respecting the rules of transparency stipulated in the regulations," Vegas said.
    "They gave maximum prominence to all the risk factors connected to the complexity of the instruments and the situation the banks were in, specifying that there was a risk of losing all the capital invested".