ASIC's Greg Medcraft warns hybrids are 'ridiculous' for retail investors

The chairman of ASIC Greg Medcraft said today in the AFR that billions of dollars of hybrid securities issued to retail investors by the major banks will eventually cause problems for the financial system. 

Mr Medcraft said hybrid securities were a “ridiculous” product for retail investors. He said it was notable that they had been banned for retail investors in other markets such as the United Kingdom.  "If a bank has any trouble they're the first line of defence." 

ASIC queried advisers and brokers in the June quarter about advice given on hybrids.