Retail Structured Products - the way of the future?

It is just over a year since Lehman Brothers collapse,

the FSA is shortly to publish its Wider Implications review on structured products and the press has been less than positive of late, not helped by the recent demise of Keydata.

Despite this, structured products have continued to grow in popularity in the retail space.

Advisers have continued to use them more and more, some attracted by the potential of higher income in this low interest era, and others drawn by the prospect of equity market participation combined with capital protection.

With this in mind, Defaqto thought it timely to publish a free guide to Retail Structured Products.

For those advisers who are unfamiliar with structured products it will guide them through the key aspects of these products, helping them to identify the separate elements that can make up a product in today's market.

The FSA's Wider Implications review will cover both Lehman-backed and non-Lehman backed products sold previously, focusing on product design, marketing, production and sale of structured products.

This guide will also serve as a timely reminder to those who are more familiar with these products of the kind of issues that should be considered.

Fraser Donaldson, author of the guide said: "The recommendation of a structured product in the retail market is all about juggling the benefits and pitfalls of several investment concepts, and matching the outcomes with the risk profile and goals of the client.

This guide looks at the separate components of these potentially complex products highlighting the key issues and technicalities that need to be researched and understood before making an investment or recommendation.

"Written in plain English, it will not put readers off by blinding them with science, but will give potential investors and advisers enough knowledge to know what to look for, and how the subtleties of the terms of the product interact.

Download a FREE copy of the guide now.

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