The Financial Industry Regulatory Authority will shortly be releasing a warning on the risks of alternative securities, according to Reuters, which is hosting its annual Global Wealth Management Summit.

The industry-funded watchdog has seen a shift toward alternative products in recent years but believes not all advisors and investors understand the risks associated with potentially higher yields, Richard Ketchum, FINRA’s chief, told attendees at the summit.

Low interest rates and worries about the stock market are factors behind the move into alternatives, said Ketchum, chairman and chief executive of the regulator. Seeing this trend, Wall Street firms are adding to their alternatives offering, which covers products such as hedge and private equity funds.

Meanwhile, at the same conference, Reuters said Greg Fleming, head of Morgan Stanley's wealth management unit, spoke about the demand for yield from investors in the $1-$10 million net worth segment. This demand is combined with a need to preserve capital, according to Fleming, dual goals which he said are often better served by certain alternative investments than equities.

"There are literally thousands of products we could bring in," Fleming told the news service, adding that the firm needs to do extensive vetting across a “broad cross section” of alternative investment products. He also said there was a need for the firm to invest in education to make sure its advisors are up to speed.