The US Securities and Exchange Commission chairman today warned all financial market participants of the need for adequate risk management as a taskforce he chaired that was set up by the International Organisation of Securities Commissions to analyse the sub-prime crisis today published its findings.

Christopher Cox, who co-chaired the 15-strong taskforce of securities regulators along with French regulator chief Michel Prada, said in a statement: “This report makes clear that, while financial innovation is to be encouraged…new financial products need to be accompanied by a thorough analysis of the risks as well as benefits they may bring.