The structured product market looks set to grow by 20 per cent next year, despite the high profile issues faced by the industry this year, OPAL has claimed.
According to the provider of structured product administration, in 2008 the structured product market grew by almost 25 per cent in the UK to £10billion, and 2009 is still on target to be a record year for structured investment plans.
In addition, OPAL predicts that there will be a move to create a new classification for 'no risk', 'guaranteed' products to ensure they do not become confused with products that have a more complicated structure.
Since Lehman Brothers collapsed last year, causing Lehman backed structured products to default, the structured product market has been under scrutiny and the Financial Services Authority is currently performing a review of the market.
Commenting, Tony Collins, managing director at OPAL comments: "2009 has been a turbulent year, but despite this, many companies see the benefits that a specific type of structured product can offer.
"I personally welcome the closer review by the FSA as this will help to create stability in the market and, more importantly, give companies the confidence to launch what are really compelling products.
"Returns of above five per cent, capital protection and protection under the FSCS give the market a healthy future," he adds.
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