New commentary explaining the risks of investing in hybrid securities has been added to MoneySmart, the consumer finance website run by the Australian Securities and Investment Commission.ASIC said its focus on these complex products - favoured in recent times by banks as an alternative funding source - follows a rise in their popularity. Around A$18 billion was raised through ASX-listed hybrid securities in the 18 months to July last year.Accordingly, the updated information on ASIC's MoneySmart website does the following: explains the differences between hybrids issued by banks and hybrids offered by other companies - for instance, banks have the benefit of government guaranteed deposits, which reduces the risks associated with their products highlights the features and risks of these securities, and includes information on the new 'non-viability' clauses found in recent bank hybrids compares the typical features of two forms of hybrid security - a capital note issued by a bank and a subordinated note issued by a company - to shares, corporate bonds and bank term deposits, so as to identify the additional risks investors may be taking on breaks down the common terms found in hybrid prospectuses, so readers can understand what 'interest deferral' or 'loss absorption' could really mean for them. Case studies are used to demonstrate how these terms operate in practice."Investor education is critical in this work. Investors must think hard about whether hybrids are suitable for them, weigh up the risks, and spread the risk by diversifying," said ASIC Commissioner, John Price.The regulator said it will continue to seek out misleading conduct over the sale of hybrids. This includes inappropriate labelling of hybrids, misleading advertisements, and unwarranted comparison of hybrids with different and less risky products, such as covered bonds or senior debt.