"I have read Greg Smith's resignation letter from the equity derivatives desk at Goldman Sachs. For me, it goes back to the values in an organisation. If you could sell your product for double the price, would you do it? I would say, in business, that's legitimate, provided your clients have adequate information.
"This is an important rule with structured derivatives that clients ignore at their peril. You have got to read the small print. You need to bring in a lawyer who explains it to you before you buy these things – otherwise there is information asymmetry.Information asymmetry is not restricted to the small print.
"There is a lot of mis-selling, and not just in derivatives. The mortgage brokers in the US who sold low-income people those sub-prime mortgages. Low-income people didn't understand finance, didn't comprehend that interest rates would jump after a short discount period. That's mis-selling.
"If a financial tool is abused and mis-sold, this does not disqualify the tool.