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...

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